Gilts are trading marginally higher from......>

GILTS: Gilts are trading marginally higher from Tuesday's 1615BST closely levels

as markets par most of overnight risk-off sentiment as the Turkish Lira rallies

around 7.5% versus the US Dollar but then gives up around half of those gains.

- 10-yr Gilt yield is 0.7bp lower at 1.259% according to Tradeweb, with the 5-yr

to 10-yr sector seen outperforming the rest of the curve.

- The main highlight this morning will be release of July inflation and producer

prices at 0930BST. MNI median forecast is for CPI to be flat on the month, but

rise to 2.5% from 2.4% on a yearly basis. While core prices are estimated to

remain steady at 1.9% y/y. Risks are seen to both the upside and downside

following last months downside miss.

- After the UK data attention will turn to raft of US data in the afternoon,

including Empire manufacturing and retail sales.

- Short sterling futures are steady to 1 ticks higher with majority of the

contracts rising are green and blue, therefore flattening the curve slightly