Gilts are trading marginally lower.....>

GILT SUMMARY: Gilts are trading marginally lower so far in early Wednesday

morning session, with markets seen looking ahead to comments from ECB President

Mario Draghi shortly and then key speeches from Jackson Hole conference on

Thursday and Friday. 10-yr Gilt yield last +1.0bp at 1.094%.

- Markets are also picking on UK press reports that the UK Government is

expected to say later today that it does not want the European Court of Justice

(ECJ) to have "direct" jurisdiction over the UK.

- Some are seeing this as a slight compromise as is a climb down from PM May's

pledge that the ECJ will not have any jurisdiction in UK after Brexit and could

pave the way for negotiations to progress next week.

- DMO re-open current 5-yr Gilt for Stg2.75bln today which is seen weighing on

that part of the yield curve this morning, but with large redemptions in the

next couple of weeks, it is expected to go well.

- Both swap spreads and breakevens are little changed so far this morning.