Gilts are on the back foot to start....>

GILT SUMMARY: Gilts are on the back foot to start the week, with July GDP data

today, Brexit news, the BOE decision Thursday, and long-term issuance in focus.

- Dec8 Gilt futures are off 4 ticks at 122.07, coming off weekend news that the

EU is preparing to give its chief Brexit negotiator Michel Barnier new

instructions to help close a deal with the UK.

- A slight bear steepening to start the week, with 2-Yr yields up 0.2bps at

0.764%, 10-Yr up 0.4bps at 1.462% and 30-Yr up 0.4bps at 1.818%. 

- Long-term issuance may be weighing on the long end of the curve, with DMO

selling new 1.75% Jan-49 for Stg2.5bln on Tuesday.

- The Short Sterling strip is a little weaker, with a few contracts off 1 tick

each but otherwise little movement.

- 0930BST sees a slew of data including Trade, Industrial Production,

Manufacturing Production, and Index of Services - culminating in July GDP for

which consensus is for growth of 0.1% M/M and 0.5% 3M/3M.