UK PM Theresa May suffered three.......>

GILT SUMMARY: UK PM Theresa May suffered three parliamentary defeats yesterday

with the government found in contempt over its handling of the legal advice it

has received on Brexit. Following the vote, the government will now need to

publish the legal advice in full.

- The vote provides a further blow to May's attempts at securing parliamentary

support for her contentious withdrawal deal. 

- Gilts have sold off since the open with the 2-year yield pushing up to 0.759%

from 0.721% and the 10-year up to 1.322% from 1.276%. 

- There has been little movement in the 2s10s while 2s30s has narrowed to

114.5bps from 119.9bps.

- Inflation breakevens are lower with the 5-year benchmark edging down to 3.177%

from 3.220%.

- Short sterling futures are down 0.5-4.0 ticks across the strip with

greens/blues underperforming.

- The Services and Composite PMIs for November came in lower than expected.

Services came in at 50.4 v 52.5 survey and the Composite at 50.7 v 52.1 survey.