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Gilts are opening a touch higher.......>

GILT SUMMARY
GILT SUMMARY: Gilts are opening a touch higher with yield curve shifting lower
by circa 0.5bps with markets looking ahead to a number of macro data releases
scheduled for today. 10-yr Gilt yield is 0.5bp lower at 1.257%.
- The US House passed a short-term spending Bill to avoid a government shut down
last night and the Latest Lloyds Business Barometer rose to 28 from 24 a 5-month
high, sending a bit of festive cheer to the markets.
- For once it was European politics that made the headlines this morning, as
overnight Catalan separatists retained a small majority in the regional
elections which is seen as a a challenge to Spanish PM Mario Rajoy. However the
Citizen party, which wants to remain as semi-autonomous part of Spain won the
most seats.
- There is a busy day on the data calendar Friday, despite this being the last
trading day before Christmas, with UK final Q3 GDP and index of services for Oct
released at 0930GMT. Then in the afternoon a raft of US data that includes
personal income/spending, US durable goods and new home sales are all released
which should keep markets interested until end of day.

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