Gilts have opened lower with the.......>

GILT SUMMARY: Gilts have opened lower with the yield curve extending its

steepening move as US Senate passes tax reform Bill, while in the UK Chancellor

Hammond plays down rift in Cabinet on Brexit and BoE plans to keep City of

London operating after it leaves the EU. 10-yr Gilt yield is +1.8bp at 1.225%

- BBC reports that the BoE is to release plans allowing European banks to

operate in the UK as normal post Brexit. The BBC has learned that banks offering

wholesale finance - money and services provided to businesses and each other -

would operate under existing rules, and would apply even in a 'no-deal'

scenario. BoE is expected to release these plans at 1300GMT

- While Hammond plans down reports that he is at odds with other cabinet members

over Brexit and what type of relationship they want after the UK leaves the EU.

- BoE Q4 2017 agents summary of business conditions are released at 0930GMT,

followed by CBI distributive trades at 1100GMT. Carney is then in front of TSC

to discuss financial stability report

- Data not expected to have much of an impact on markets, but in thin illiquid

markets there is increased risk of volatility.