There remains a marked difference in...>

GILT SUMMARY: There remains a marked difference in the Brexit narrative between

Westminster and Brussels, which has similarly been reflected in the media over

the weekend. 'No deal' is still not entertained in the UK as a likely outcome,

while in Europe it appears more like a base case scenario.

- UK government spokesman James Slack indicated this morning that a snap

election or second referendum is not in the national interest (not a firm

rebuttal) and that PM May will push some form of her Withdrawal Agreement again

if there is likelihood of it passing in the HoC. 

- Gilts initially opened weaker this morning, but subsequently regained lost

ground with yields returning towards Friday's close. Current yield levels:

2-year 0.629%, 5-year 0.751%, 10-year 1.003%, 30-year 1.558%.

- The Jun 19 gilt future trades at 129.29 near the top of the day's range.

- Short sterling futures are broadly 0.5-1.0 ticks lower.