Gilts are taking cue from recovery in US......>

GILTS: Gilts are taking cue from recovery in US Treasuries and modestly positive

opening in German Bunds as markets trade with a slight flight-to-quality bid

early Friday. Rumblings that the EU is unlikely to agree to new UK backstop on

Irish border also seen underpinning move in Gilts. 10-yr Gilt yield last 0.4bp

lower at 1.555%, while curve is ever so slightly bull steepening as short-end

outperforms the long/ultra long-end

- UK PM May is set to outline fresh proposals to avoid a hard border in Ireland

in the next few days, the Times reports. No 10 said any new plan would not

hamper Britain's ability to seek new free trade deals.

- Little data from the UK or US today, so attention likely to remain on Italian

politics and a number of Fed speakers this afternoon.

- Short Sterling has opened on the back foot with futures steady to 1 tick

lower, but volume has been low so far.