With cross party talks collapsing......>

GILT SUMMARY: With cross party talks collapsing and little chance of the PM's

Brexit bill getting through parliament, focus now shifts to a new round of

indicative votes in parliament, which Theresa May will discuss with colleagues

before the next cabinet meeting. Given that the last round of indicative votes

failed to produce a parliamentary consensus, the government may consider a

system of reallocating votes from a ranked preference list in order to whittle

down a solution (something which PM May has so far shied away from).

- The Jun-19 gilt future trades at 128.82, down 10 ticks from Friday's close and

14 ticks off the day's high; L-H: 128.63-128.96. 

- Gilts have sold off with yields 1-2bps higher on the day. Cash yields (Last /

1d chg / L...H): 2Y (0.7041% / +1.7bp / 0.6944%...0.7083%); 5Y (0.8067% / +1.7bp

/ 0.7991%...0.8136%); 10Y (1.0488% / +1.6bp / 1.0399%...1.0574%); 30Y (1.6006% /

+1.4bp / 1.5912%...1.6084%).

- Short sterling futures have broadly sold off with greens underperforming: W

(broadly - 0/1 ticks lower); R (- 1.5/2 ticks); G (- 1.5/2.5 ticks); B (- 1/1.5

ticks)