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

GILT SUMMARY
GILT SUMMARY: Gilts have opened lower, with the yield curve shifting higher by
around 3.5bps as markets react to overnight release of December FOMC minutes
that confirmed the Fed will continue to gradually increase interest rates this
and next year. 10-yr Gilt yield is 3.5bp higher at 1.249%.
- There was some positive news on the UK housing market with latest Nationwide
survey showing prices rose by 0.6% in December and 2.6% in 2017, much higher
than consensus of 0.1% and 2.0% respectively.
- Sterling's fall against the Dollar has paused overnight, maybe supported by a
Bloomberg story that quotes senior officials with close contact with PM May
saying that they think Michel Barnier is "bluffing when he says there will be no
special deal for financial services". Talks are expected to resume on a Brexit
transitional period next week.
- In terms of data releases today, key one from the UK will be December service
PMI at 0930GMT. Consensus is for a slight rise to 54.0 from 53.8, however risk
is seen to the downside following weaker than expected manufacturing and
construction PMIs. Mortgage approvals & M4 money supply are also released.

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