Gilts have opened little changed.......>

GILT SUMMARY: Gilts have opened little changed despite the slight risk-off tone

seen overnight following further rhetoric from North Korea leader Kim Jong-un

and threatened to test a nuclear bomb over the Pacific ocean, as strong French

and German PMIs have weighed.

- Markets focus though is closer to home though with UK PM May's speech in

Florence this afternoon the main event. The crust of the speech is already known

-- paying E20bln for a 2-yr transition deal, how much more there will be and if

it will be enough to unlock current stalemate in Brexit talks will be open for

interpretation.

- BoE's Andy Haldane is scheduled to speak later in Washington, but no text is

scheduled tobe released.

- 10-yr Gilt yield is 0.1bp lower at 1.369%,

- UK swap spreads are marginally tighter this morning however breakevens are

little changed.