Gilts have also opened with a.................>

GILTS: Gilts have also opened with a flight-to-quality bid on the back of the

sharp fall in the Turkish Lira and rise geo-political tension between Russia and

the US. UK 10-yr yield is 4.6bp lower at 1.255% according to Tradeweb, and is

seen leading the rest of the yield curve lower.

- Markets also taking note of more comments from outgoing MPC member Ian

McCafferty in an interview in the Guardian. McCafferty said that The era of low

interest rates will last for at least another 20 years, despite gently rising

official borrowing costs in the coming years. Also added that UK borrowers and

savers should get used to interest rates being "significantly" below the 5%

average in the 10 years leading up to the financial crisis.

- Main highlight from the UK will be release of flash Q2 GDP data at 0930BST

with markets looking for small rise to 0.4% q/q from 0.2% q/q seen in Q1. UK

industrial production for June will also be released.

- Short sterling strip is flatter as white contracts are unchanged while blue

contracts are 4 to 5 ticks higher.