EGB/Gilt: Gilts are marginally lower...>

BOND SUMMARY: EGB/Gilt: Gilts are marginally lower this morning in what has been

a quiet session with a large proportion of the Eurozone on holiday for All

Saints Day. There has been little movement in EGBs.

- The main event of the morning has been the release of the UK PMI

manufacturing. The headline number surprised positively, but remained below 50

and continued to be driven by poor details. The number was largely boosted by UK

exports to EU companies which were stockpiling goods ahead of Brexit.

- There has been focus on the next BoE Governor with the BBC reporting last

night that Minouche Shafik is the government's top choice to take over from

Carney next year - but that no announcement was likely until after the election.

The market reaction has been limited as more seems to be known about her views

on reform than on monetary policy.

- US data will be the key driver for Gilts/EGBs later today with the employment

report and ISM manufacturing both due for release.

- Gilt futures are down -0.16 today at 132.68 with Bund futures down -0.02 at

171.74 and BTP futures down -0.24 at 144.23.