Gilts are trading steady to higher,....>

GILT SUMMARY: Gilts are trading steady to higher, with the yield curve bull

steepening as the short-end outperforms on continued UK growth concerns which is

weighing on future path of UK interest rates.

- 10-yr Gilt yield is 1.4bp lower at 1.438%, 2s/10s is 1.2bp steeper

- More bank analysts have adjusted their call on BoE interest rates with HSBC

now expecting no hikes for either 2018 or 2019. While Nomura who originally

forecast two hikes this year (May & Nov) now expect this to be delayed by 1

quarter and see a hike in August and then February. 

- Elsewhere PM May has appointed Sajid Javid to replace Amber Rudd at the Home

Office following the later's resignation late Sunday. Some picking up that Javid

supports Brexit having initially campaigned to remain in the EU.

- Short Sterling strip has edged higher by 1 to 2 ticks, led by back end of

white contracts and all of red. Sterling has slipped against both the US Dollar

and the Euro, but moves are modest.

- There has been a dearth of UK data and comments from BoE Haldane did not touch

on current monetary policy.