Gilts are also trading modestly higher led....>

GILTS: Gilts are also trading modestly higher led by the rally in the 10-yr

sector, although they are off session best levels as markets digest the BoJ

decision and slip in UK confidence data. UK 10-yr Gilt yield is 2.4bp lower at

1.329% vs low of 1.314%, while 2s/10s spread is 0.6bp flatter and 10s/30s 0.6bp

steeper.

- BoJ tweak its asset purchase programme, however the main news was that it

introduced forward guidance saying that rates would remain at current levels

"for an extended period of time", but added that the 10-yr yield could fluctuate

in a wider range.

- GfK consumer confidence slipped to -10 in July from -9 in June driven by falls

in consumers' perceptions of both their own personal finances and the general

economic situation over the next 12 months. The Lloyds Business Barometer though

posted no change and pointed to steady economic growth.

- Short sterling futures are steady to higher, curve modestly flatter as green

and blue contracts rise by 1 to 3 ticks

- There is a dearth of UK data today so attention will be on EU and US releases