Gilts are trading modestly higher,.....>

GILT SUMMARY: Gilts are trading modestly higher, taking cue from overnight move

in US Treasuries, with the yield curve seen shifting lower by around 1.5bps.

10-year Gilt yield is -1.8bp at 1.364%.

- UK GfK consumer confidence surprisingly ticked to a 5-month high of -9 but

remained muted as consumers continue to grapple with in squeezed incomes and

economic uncertainty. While house prices rose by 2.0% y/y in September according

to latest Nationwide index, however, London house prices fall for the first time

in 8-years.

- Markets will be keeping an eye on a raft of UK data released at 0930BST,

including final Q2 DGP reading, July index of services and BoE M4 money supply

and mortgage approval data. Markets will also be keeping an eye on Eurozone

flash Sep inflation at 1000BST.

- The BoE 20-year of independence conference continues Friday with IMF President

Christine Lagarde scheduled to speak at 1130BST, while BOE Carney and ECB Mario

Draghi sit down for a "discussion", followed by closing remarks by Carney at

1545BST.