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

GILT SUMMARY: Gilts have opened little changed, curve slight bear flattening as

markets digest last nights Fed FOMC decision to raise rates and the Tory

government loosing key vote in the Commons, while also looking ahead to BoE MPC

monetary policy decision later. 10-yr Gilt yield is 0.3bp higher at 1.216%.

- As widely expected the Fed raised rates by 25bps last night, however, left its

rate path little changed which forecasts 3 rate hikes in 2018 and just over 2 in

2019. Overall suggest rates will continue to rise at a gradual pace.

- In the UK, the government lost a key vote on an amendment to the EU Withdrawal

Bill last night, which now gives the Commons a "meaningful vote" on the final

Brexit deal. This again calls into question May's authority as she heads to EU

leaders summit were the 1st phase of Brexit is expected to be signed.

- Looking ahead there is UK November retail sales released at 0930GMT with

consensus looking for a slight rise in total sales. Then at midday latest BoE

monetary policy decision is announced with markets seeing MPC voting 9-0 to

leave both rates and QE unchanged following 25bp rate hike in November. Risk is

seen in the MPC statement that is accompanied with the decision.