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

GILT SUMMARY: Gilts have opened higher with the yield curve shifting lower by

around 2bps as US are thinking of levelling trade restrictions and tariffs on

China in the tune of $60bln and potentially more personnel changes in the Trump

administration. UK 10-yr gilt yield is 1.8bp lower at 1.466%.

- While domestically tensions with Russia have edged higher as Russia did not

respond to UK ultimatum on the spy poising investigation with PM May expected to

announce any repercussions later today. There was some (good?) news on Brexit

though, with the Sun newspaper saying that the Brexit committee agreed to EU

transitional terms on keeping its boarders open until 2021, clearing one of the

hurdles for a transitional deal to be agreed next week.

- Once again there is a dearth of UK macroeconomic data today, so attention will

likely be on a number of ECB speakers scheduled for today, any changes in the

Trump administration and talk of more tariffs, US retail sales and then BoE APF

reinvestment buyback in the 7-yr-15-yr sector for Stg1.22bln.