Gilts have extended there opening......>

GILT SUMMARY: Gilts have extended there opening move higher supported by

risk-off sentiment flows as US President Trump announces steel and aluminium

tariffs and concerns this could lead to a trade war with Asia/Europe. Markets

also fear that PM May's Brexit speech is not going to answer the difficult

questions on the Northern Ireland/Ireland boarder issue. The 10-yr part of the

yield curve is seen leading the way higher.

- 2-yr Gilt yield is -2.1bp at 0.743%, 5-yr -3.5bp at 1.093%, 10-yr -4.2bp at

1.425%, 30-yr -2.7bp at 1.848% and 50-yr -2.2bp at 1.632%.

- PM May speech is expected at 1330GMT at Mansion House. Newswires report that

May is to lay out five "tests" for a future UK-EU deal and pledge to "bring our

country together", that a "deepest possible" free trade deal is "achievable"

because it is in both EU and UK interests.

- Markets dismissed the slightly higher than expected rise in UK construction

PMI, while comments from BoE Governor Mark Carney was on crypto-currencies and

did not touch upon current monetary policy.

- Breakevens are mixed, flatter, while swaps spreads are little changed.