Gilts have opened Friday sharply.......>

GILT SUMMARY: Gilts have opened Friday sharply lower led by the 10-year part of

the curve despite conflicting reports on the progress of Brexit negotiations.

10-year yield is 3.2bp higher at 1.296% and have risen nearly 10bps since

hitting this weeks low of 1.195% on Wednesday afternoon.

- The FT reports that UK PM Theresa May is ready to increase the Brexit divorce

bill from the current offer of Stg20bln, hoping that it will help move talks

onto a transitional deal. However, the Telegraph reports on a leaked EU document

that shows the UK might have to accept an "all-island" approach when it comes to

trade between Northern Ireland and Ireland which the Telegraph says the UK will

not be able to agree.

- Brexit Secretary David Davis and EU's Chief negotiator Michele Barnier are

expected to give a press conference later today, so undoubtedly questions will

be asked on both topics.

- There is also a raft of UK data released at 0930GMT with September industrial

production, trade balance and construction output data crossing the wires and

could impact 2nd reading of Q3 GDP.