Gilts have opened marginally higher....>

GILT SUMMARY: Gilts have opened marginally higher with the 10-year part of the

curve currently outperforming with 10-yr yield 1.5bp lower then Thursday's close

at 1.246% as markets continue to digest BoE MPC decision to raise rates by 25bps

to 0.50% yesterday.

- Some analysts see the markets over reacting to the decision and subsequent

dovish interpretation of the MPC minutes and quarterly inflation report and see

risk that rates could rise for a second time in Q2 2018 compared to current

market pricing of Q4 2018. 

- BoE Broadbent was on BBC radio 4 this morning and said that he thought rates

would need to rise 2 more times to get inflation back on track, supporting the

consensus view on the MPC, however sounded cautious on UK's economic outlook

- Looking ahead, UK Oct service PMI is the main event this morning, with

consensus seeing a slip to 53.3 from 53.6, though risks are seen to the upside

following better than expected construction and mfg PMIS earlier in the week.

- In the afternoon attention will be on US non-farm payroll and average hourly

earnings with markets looking for sharp bounce back following last months drop.