UK Environment Secretary and Leave.....>

GILT SUMMARY: UK Environment Secretary and Leave campaigner Michael Gove has

stated that tariffs for a no-deal Brexit scenario will be announced shortly, and

has said that he does not expect zero-rate tariffs on food products.

- This morning's labour market report was relatively robust and from a market

expectations perspective was arguably net neutral. 

- Gilts have lacked direction this morning with yields hovering near the middle

of the day's ranges and <1bp lower from yesterday's close. Current yield levels:

2-year 0.719%, 10-year 1.155%, 30-year 1.677%.

- The curve has marginally flattened with 2s30s trading down to 94.9bps from

95.8bps.

- The Mar-19 gilt future trades at 124.16, 13 ticks off the high.

- Inflation breakevens have ticked higher with the 5-year benchmark trading at

3.143% off a low of 3.133%.

- Short sterling futures are 0.5-1.5 ticks higher with the strip flattening

slightly on the back of greens/blues outperforming.