Voting is underway to eliminate the....>

GILT SUMMARY: Voting is underway to eliminate the next candidate in the

Conservative party election race after Rory Stewart failed to make the cut

yesterday. Boris Johnson remains the clear frontunner, with the remaining three

candidates - Michael Gove, Jeremy Hunt and Sajid Javid - fighting it out for the

remaining votes. The result is expected around 1300 BST.

- UK retail sales for May came in weaker than expected and the previous month's

figures were revised lower.

- The Sep-19 gilt future trades at 130.42, 4 ticks off the day's low; L-H:

130.38-130.66.

- Gilts have rallied with yields 2-3bps lower on the day. Cash yields (Last / 1d

chg / L..H): 2Y (0.5871% / -2.4bp / 0.5733%...0.5903%); 5Y (0.616% / -2.8bp /

0.6011%...0.6193%); 10Y (0.829% / -3.5bp / 0.8167%...0.8327%); 30Y (1.4283% /

-2.9bp / 1.4178%...1.4336%). 

- The short sterling futures strip has flattened: W (+ 0.5/1.5 ticks); R (+

2.0/2.5 ticks); G (+ 3.5/4.0 ticks); B (+ 4.0/4.5 ticks)