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

GILTS: Gilts have opened higher, taking cue from overnight rally in US

Treasuries and positive opening in German Bunds, as risk-off flows dominate

markets so far Monday morning. UK 10-yr Gilt is leading the charge, with yield

falling 3.9bp to 1.271%.

- Concerns of an escalation in US/China trade war is the main impetus for the

market sentiment, while a China RRR cut and a growing lost of foreign companies

operating in the UK warning about the slow progress of Brexit also adding to

risk-off sentiment.

- There is no data from the UK Monday, so attention likely to remain on

geo-political events including a Commons vote on Heathrow expansion that could

be another test for the government.

- Short sterling strip is higher/flatter as green/blue contracts rally by 2 to 3

ticks, while whites are 0.5 to 2 ticks higher.