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Gilts have opened lower, with yield curve.....>

GILTS
GILTS: Gilts have opened lower, with yield curve shifting higher by around
1.5bps as markets digest latest Brexit news and Bloomberg ECB sources story.
10-yr yield last 1.5bp higher at 1.292%.
- Markets also waiting on comments from BoE Governor Mark Carney later this
morning and looking out for any hints that a rate hike in August is more on the
cards. According to MNI PINCH markets are pricing in a 75% chance of rates
rising to 0.75% in August.
- On Brexit, markets appear to be thinking that PM May is going for the 'softest
of soft Brexits' and brushing off concerns that latest customs idea is
unworkable according to reports on comments from David Davis. PM May is in
Berlin today so might get some headlines later on.
- Front end of the short sterling strip is under some selling pressure this
morning with reds 2 to 3 ticks lower.

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