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

GILT SUMMARY: Gilts have opened lower with the yield between 1.5bp and 2.6bp

higher, with the curve pivoting around the 10-yr, taking cue from sell-off in US

Treasuries overnight as markets look ahead to large US Bill and front end supply

(2s,5s,7s & 2-yr FRN). UK 10-yr gilt yield is 2.6bp higher at 1.628%.

- Bloomberg have reported that the UK could withhold Brexit payments if the it

does not get a trade deal it wants from the EU. According to the BBG article

senior British officials have privately discussed the idea as a fall-back option

that could be triggered if negotiations go wrong, three people familiar with the

matter said.

- Brexit secretary David Davis gives a speech to business leaders in Vienna

today and announce that the UK wants to continue to have close regulation with

the EU after Brexit and oversea a race to the top in standards. His comments are

not expected to give any update on progress of talks on a transitional agreement

which are currently taking place in Brussels.

- Data is rather thin on the ground in the UK again today with only CBI

industrial trends survey released at 1100GMT, but is unlikely to impact markets.