Gilts are trading modestly lower at....>

GILT SUMMARY: Gilts are trading modestly lower at the start of Friday's trade

with the yield curve slightly steeper as the long-end comes under selling

pressure and taking cue from fall in US Treasuries overnight. Prices though are

slowing paring opening losses as moves look overdone with 10-yr Gilt yield 1.7bp

higher at 1.347% vs high of 1.358%. 

- Overnight news included the usual hard line on Brexit from French President

Macron, saying you can't have same access for financial services unless you pay

into EU and abide by rules. Markets also eyeing progress of US spending Bill 

that congress voted through last night, but with the Democrats in the Senate

saying they have enough votes to block and Bill and cause a temporary government

shutdown.

- Main highlight from the UK will be release of December retail sales at

0930GMT. With some disappointing results from retailers, especially in the

non-food sector, markets are expecting a contraction in sales compared to

November.

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