Gilts have have opened a touch lower in.......>

GILTS: Gilts have have opened a touch lower in European holiday effected Tuesday

trade with yields seen around 1bp higher across the board, taking cue from move

in US Treasuries overnight. 10-yr Gilt yield is 0.9bp higher at 1.428% according

to Tradeweb.

- Overnight US President Trump delayed steel and aluminium tariff decision for a

month. The RBA left policy on hold and said very little that was new. While

Bloomberg reports that a the UK will "propose" another "solution" on the Irish

boarder issue in the hope it will break the deadlock.

- As Europe is closed for Labour Day Holiday, markets are likely to be very

thin, however there is some UK data for markets to look forward to.

- The morning sees the UK's money and credit release at 0930BST as well as the

manufacturing PMI release. The PMI releases over next 3-days are seen key to

whether the UK bounces back from a disappointing first quarter. Market consensus

though is for the manufacturing component to slip to 54.8 from 55.1.

- Short Sterling strip has opened steady to 1 tick lower, curve steepening

slightly, but volume is very low.