Gilts are opening Wednesday modestly...>

GILT SUMMARY: Gilts are opening Wednesday modestly lower with yield curve seen

shifting higher by around 0.5bps as Brexit Secretary hints at a compromise, shop

prices are little changed and markets gear up for first BoE rate hike in over

10-years. 10-year Gilt yield is +0.5bp at 1.339%.

- BRC retail prices remained at their shallowest level in 4-years at -1% y/y as

2.2% rise in food prices were off-set by a 1.5% fall in non-food prices.

Nationwide said that house prices rose by 0.2% m/m in Oct down from 0.4% m/m in

Sep. While NIESR said they expect BoE to raise rates every 6-months to 2%.

- Yesterday evening saw Brexit Secretary David Davis answering question at Lords

Committee and hinting at a compromise on the Brexit bill saying that "on

balance" the Article 50 agreement "will probably favour the EU in terms of

things like money and so on". Both the UK and EU have confirmed Article 50 talks

will continue on Nov 9 for 2 days, but no new round of talks have been agreed as

yet. 

- Key events today included UK mfg PMI at 0930GMT, then in the US there are ADP

employment numbers, ISM data and after the markets closed Fed FOMC decision.