Theresa May's former advisor and.......>

GILT SUMMARY: Theresa May's former advisor and Joint Chief of Staff Nick

Timothy, has given a relatively damning interview with the BBC in which he

argues that the PM and other ministers are treating Brexit like a "damage

limitation exercise". Although Timothy no longer has much in the way of direct

leverage, his comments are likely to stir the eurosceptic wing of the Tory party

and further complicate May's bid to gain parliamentary support for her deal on

March 12.

- Short-dated gilt yields have drifted lower today while the belly/longer-end

has largely traded sideways. The 2-year benchmark yield is down 1.7bps on the

day while the 2s30s spread has pushed up to 100.6bps from 98.8bps. Current yield

levels: 2-year 0.802%, 5-year 1.009%, 10-year 1.312%, 30-year 1.817%. 

- The Mar-19 gilt future trades at 122.96 near the middle of the day's range.

There has been a marginal push higher for longer-term inflation breakevens with

the 10-year trading up to 3.067% from 3.041%.

- The short sterling futures strip has steepened slightly with greens/blues down

1.0-1.5 ticks.