UK PM Theresa May has announced that...>

BOND SUMMARY: UK PM Theresa May has announced that she will resign as

Conservative leader on Friday June 7, paving the way for a new leadership race

the following week. There has been limited reaction in gilts, while cable

initially rallied to 1.2710 before giving back the gains. Boris Johnson remains

the favourite in the betting markets to take over as leader.

- Gilt Yields are ~1-2bp higher. Current yield levels: 2-year 0.646%, 5-year

0.716%, 10-year 0.964%, 30-year 1.527%

- US TSYs have drifted sideways with TYM9 currently trading at 124-29.

- While there has been limited movement in core EGBs so far, Italian BTPs have

rallied sharply. Deputy PM Matteo Salvini has said that he is ready to work with

the French and German leaders to change EU rules. BTP yields are 4-9bp lower

with 2s30s up 5bp on the day.

- Euro$ futures are 3-4 ticks lower with reds/greens underperforming. Euribor

futures are broadly flat/0.5 ticks higher.

- Next up on the data calendar will UK CBI Retailing Reported Sales at 11:00

BST, followed by US Durable Goods Orders at 13:30BST>