With PM Theresa May reluctantly........>

GILT SUMMARY: With PM Theresa May reluctantly accepting a lengthy extension to

Article 50 there is renewed speculation that backbenchers will urge her to step

down. Former Brexit Secretary David Davis has been one of the first to fire a

warning shot as he argued that the new delay will increase pressure on May to

resign.

- Mirroring the recent criticism from Trade Secretary Liam Fox, Foreign

Secretary Jeremy Hunt has stated that a customs union would be unworkable for

the UK.   

- In reference to the Brexit extension, President of the European Council Donald

Tusk has warned that the UK should not waste time, although unhelpfully

parliament will rise for Easter recess from Thursday evening.

- Gilt yields have edged higher, albeit within a relatively tight range. Current

yield levels: 2-year 0.706%, 5-year 0.852%, 10-year 1.112%, 30-year 1.637%.

- The Jun-19 gilt future trades at 128.07, 9 ticks off the low.

- Short sterling futures are 1.0-1.5 ticks lower with slight underperformance in

whites/reds.