Gilts have opened higher taking cue from......>

GILTS: Gilts have opened higher taking cue from rally in US Treasuries and

German Bunds in wake of risk-off flows as US/China trade spat intensifies. 10-yr

Gilt yield is 5bp lower at 1.271% according to Tradeweb and is leading the rest

of the yield curve lower. 2s/10s is 2.2bp tighter at 57.6bps.

- The government was defeated once again in the House of Lords on the question

of a 'meaningful vote' and so it will now go back to the House of Commons on

Wednesday. PM May will then have to try and convince her rebel MPs to not back

the amendment.

- 2-days of Brexit negotiations get underway today with the Irish border issue

and future relationship on the agenda. However there is also talk within the EU

that the risk of the UK crashing out of the EU with no deal in March 2019 is

increasing.

- No UK data today so attention will remain on domestic politics, global trade

and the ECB forum in Sintra.