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UK PM Theresa May has announced that...>

BOND SUMMARY
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> 

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