Gilts are opening higher with the......>

GILT SUMMARY: Gilts are opening higher with the 10-yr part of the yield curve

slightly outperforming supported by risk-off flows as risk of a trade war ticks

higher following comments from US President Trump over the weekend and in wake

of shift to populist parties in Italian elections. 10-yr Gilt yield is 3.1bp

lower at 1.443%.

- There are also concerns over the negative impact on UK growth from last weeks

snow storms with newswires reporting the economy potentially losing up to

Stg1bln a day due to lost work/business.

- Looking ahead market focus will be on service PMI data, especially from the UK

which consensus seeing a small pick to 53.3 from 53.0 for February. UK

manufacturing and construction PMIs came in mixed, but with a number of

restaurants reporting branch closures concerns and a touch retail environment,

risk appears to the downside.

- Brexit negotiations continue in Brussels this week, and markets are waiting on

a more detailed reaction from the EU to PM May's speech she made on Friday.