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Gilts have opened higher led by 2.1bp fall....>

GILTS: Gilts have opened higher led by 2.1bp fall in the 10-yr yield as markets
look ahead to release of first estimate of UK Q1 GDP.
- The first estimate of UK first quarter gross domestic product will be released
Fri, when we learn how economic growth fared in the first three months of 2018.
The MNI median expectation, taken from a poll of analysts, looks for a drop in
the quarterly rate to 0.3%, down from 0.4% in Q4. Risk though is seen to the
downside, which already looks priced in by the markets.
- The print is seen key to whether or not the BoE will raise rates at its next
MPC meeting in May. BoE Carney is due to speak at 1500BST, which will be keenly
watched by markets.
- In domestic politics the heat is rising on the Tory government once again as
they lose Commons vote on Customs Union as the conservatives abstained, but it
was non-binding and is unlikely to change the governments stance on Brexit.
- Breakevens have tightened by around 1bps. Euro/Sterling holds steady but the
pound has dropped vs the Dollar.

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