Gilts have edged higher so far this morning...>

GILTS: Gilts have edged higher so far this morning despite the better than

expected service PMI data for Spain, as markets digest latest Brexit comments

this time from former BoE governor Lord King. 10-yr Gilt yield is 0.9bp lower at

1.418% with yield curve ever so slightly flatter as the ultra long-end

outperforms the rest of the curve.

- Lord King has attacked the "incompetence" of the governments approach to

Brexit in an interview with the BBC and added that the current debate around

Brexit was "depressing" and was stopping discussions on the "big economic

challenges" faced by the UK today that includes pension saving, finance for the

NHS and cost of elderly care.

- Markets also continue to digest the comments from current BoE governor Mark

Carney at yesterday's TSC were he hinted that he may extended his stay at the

Bank.

- Looking ahead the key data release today will be the service PMI for August,

and following the disappointments in the manufacturing and construction PMIs,

markets likely pricing in downside risks to the consensus of 53.9