Gilts are steady to higher at start....>

GILT SUMMARY: Gilts are steady to higher at start of Super Thursday with the

yield curve bull flattening as the long-end outperforms as markets fully expect

the BoE to raise rate for the first time in over 10-years. 10-yr Gilt yield is

0.1bp higher at 1.348%.

- The main event today will be the Bank of England MPC monetary policy decision,

MPC minutes and release of November Quarterly Inflation Report. Markets are

expecting a 7-2 vote for rates to rise by 25bps to 0.50%and for the central bank

to reiterate its forward guidance that further rate hikes will be "limited and

gradual" with the added possibility that it will keep the phrase rates will need

to be tightened faster than markets currently expects.

- There have been some buying of bullish call options this morning covering the

risk of either a dovish rate hike or no rate hike at all.

- Before the BoE decision there is UK construction PMI data at 0930GMT with

consensus for a slight rise to 48.5 from 48.1

- Swap spreads are mixed but little changed, however breakevens are around 0.5bp

wider.