Gilts have opened a touch higher with the.....>

GILTS: Gilts have opened a touch higher with the yield curve seen shifting lower

by around 0.5bps as markets open with a mild risk-off tone following comments

from BoE Tenreyro and slight build up in domestic political risks.

- Last night BoE Tenreyeo appeared to be on the fence about the timing of the

next rate hike saying that it is still an open question but still saw the need

to tighten policy gradually over the next 3-yrs. Data over the next couple of

months is seen key and the decision on rates.

- Storms are gathering in UK politics again with confirmation that the EU

Withdrawal Bill will be debated in the House of Commons on June 12 where the

government hopes to vote down the 15 amendments from the House of Lords, but is

likely to find it very tough with 12 backbenchers threatening to defeat May on a

future customs arrangements.

- It has also become known that a long-awaited white paper on the future of

UK/EU relationship after Brexit, expected before the crucial June EU summit, has

been delayed. Business leaders have also weighed in warning PM May to get on

with making decisions on Brexit. 10-yr Gilt yield is unchanged at 1.295%.