Gilts have opened lower led by the 10-yr......>

GILTS: Gilts have opened lower led by the 10-yr sector, weighed by fall in US

Treasuries and German Bunds, plus the launch of a new 5-yr Gilt today. Markets

also digesting comments from BoE Broadbent made last night. 10-yr Gilt yield is

3.4bp higher at 1.3% with 2s/10s 1.3bp wider and 10s/30s 0.4bp tighter.

- Broadbent said that he had not yet to decided if he will vote for a rise in

the interest rate next week, but did defend the banks use of QE and clarified

that the central Bank would only start to unwind its balance sheet once rates

reach 1.50%.

- There is only UK CBI trends survey released at 1100BST, however the DMO launch

a new 5-yr Apr-24 Gilt for Stg2.75bln today while the BoE conduct a reverse

auction in the over 15-yr sector for Stg995mln following the Jul-18 Gilt

redemption.

- Short sterling futures are steady to 3 ticks lower with the strip steeper as

blue contracts come under the most selling pressure.