Gilts are trading ever-so-slightly.....>

GILT SUMMARY: Gilts are trading ever-so-slightly higher with yields around 0.2bp

higher across the board according to tradeweb.

- Prices are seen weighed by modest easing in US Treasuries overnight, tick

higher in UK GfK consumer confidence, but underpinned as initial reaction to

comments from BoE MPC member Michael Saunders that appeared to be less hawkish

than expected.

- Saunders said that he backs a modest rise in rates to get inflation back

towards BoE target of 2.0% but added that the risk was the Brexit process would

be bumpy and hit confidence.

- We no further data from the UK scheduled today, attention will turn to

Eurozone flash inflation data at 0900GMT and the a raft of US data that includes

personal income/spending, initial jobless claims, MNI Chicago report and pending

home sales.

- In between though, we are expecting a press briefing from UK's David Davis and

EU's Michal Barnier following the 3rd round of negotiations. Optimism is

extremely low though following comments from Verhofstadt yesterday.