Gilts have opened marginally higher....>

GILT SUMMARY: Gilts have opened marginally higher underpinned by yet another

large sell-off in US and Asian equities. However UK bond markets are still

digesting the hawkish BoE MPC meeting yesterday and the implications of future

monetary policy. 10-yr Gilt yield is 0.1bp lower at 1.616%.

- BoE Deputy Governor Ben Broadbent has been on the airwaves this morning,

reiterating the MPC message that to get inflation back to target over the medium

term then the rate path needs to be slightly higher than that what was expected

in November but moves would be "limited and gradual". Broadbent added though

that "there's nothing terribly dramatic going on here".

- Looking ahead UK industrial/manufacturing production along with trade balance

data is released at 0930GMT. NIESR Jan GDP estimate is expected at 1200GMT,

while an update on Brexit negotiations is also expected with Michel Barnier due

to give a press conference just before midday.

- Consensus is for industrial production to fall by nearly 1% due to sharp

contraction in mining and quarrying and there are concerns about possible

continued fall in UK car production.