Gilts are opening marginally higher....>

GILT SUMMARY: Gilts are opening marginally higher with yields a couple of basis

points lower across the strip, albeit in light illiquid trade, as markets digest

latest Brexit commentary over the weekend. 10-yr Gilt yield is 0.1bp lower at

1.157% according to Tradeweb.

- PM Theresa May said in a couple of articles in the Sunday newspapers saying

that the government is "proving the doubters wrong" with its Brexit negotiations

and that they would "not be derailed" from securing an "ambitious deal".

- Foreign Secretary Boris Johnson though said he would be penning the case for a

"liberal Brexit" and for the UK to be allowed to discuss free trade deals with

other countries while in the transition phase with the EU. EU Chief negotiator

Barnier though said that there was "no way" the UK will be able to get a bespoke

deal with the EU and will need to remain in the single market and customs union

during the transition.

- Looking ahead the UK cabinet are due to meet at the start of this week to

discuss what future relationship they would like with the EU. While PM May is

due to give an update on Brexit talks to MPs later today.