Gilts have moved off opening session...>

GILT SUMMARY: Gilts have moved off opening session lows, but remain under light

pressure, with the front-end seen leading the underperformance as UK's Office

for National Statistics (ONS) officially revises Unit Labour Costs (ULC) to 2.4%

y/y in Q2 compared to 1.6% y/y reported on Friday.

- 2-yr Gilt yield is +1.3bp at 0.439%, 5-yr +0.6bp 0.776%, 10-yr +0.7bp 1.371%

and 30-yr +0.4bp at 1.956%, according to Tradeweb.

- Gilts opened lower with majority of pressure seen on the front-end of the

curve as the Times reported there was an error on ONS' unit labour costs and

growing confidence that PM May is likely to remain in power as the movement

behind calling for her resignation faded over the weekend. The long-end end was

seen supported by block buy in Dec Gilt future -- 1,125 at 123.81.

- The Dec Gilt future temporarily reversed losses on light buying, but faded

lower once more as markets looked ahead to PM May addressing parliament on

Brexit as the fifth round of talks get underway in Brussels.

- Very little movement seen in swap spreads today, however 5-yr and 10-yr

breakevens are around 1.4bp tighter, as linkers weighed by revised ULC.