Gilts have opened marginally higher....>

GILT SUMMARY: Gilts have opened marginally higher with the yield slightly

flatter as long-end outperforms, supported by mild risk-off sentiment and

continued easy monetary policy from the BoJ. 10-yr Gilt yield is 2.0bp lower at

1.480% and lowest level since Jan 31.

- Continued Brexit concerns and a 0.3% fall in house prices in February

according to latest Nationwide data also seen underpinning higher move in Gilts.

- Latest Brexit news is that PM May is due to meet EU council president Tusk at

around lunchtime today ahead of keynote speech on Brexit tomorrow. May will also

be meeting Cabinet ministers to give them the lowdown of the speech. While

overnight Brexit secretary David Davis said the UK would not pay its

multibillion pound Brexit bill unless it backs down from keeping N.Ireland in

customs union.

- UK re-open its 5-yr 0.75% 2023 Gilt for Stg2.75bln today and in terms of data

releases have manufacturing PMI and BoE M4 money supply and mortgage approval

data at 0930GMT.

- Swap spreads are modestly wider while breakevens are little changed.