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Gilts have opened marginally higher, but......>

GILTS
GILTS: Gilts have opened marginally higher, but too a lesser extend than German
Bunds, with yield curve shifting lover by around 1bps, as markets open up with a
mild risk-on tone. 10-yr Gilt yield is 0.7bp lower at 1.366%.
- News on Brexit has not been encouraging with the latest round of talks
appearing not to have produced much and both UK and EU trading insults. An EU
official has said the UK plan's are "fantasy" while the UK responded saying that
those remarks were "laughable" and that they should not "insult us".
- Elsewhere BoE Carney last night told the Society of Professional Economists
that future path for policy will "depend on the outlook for the economy which in
turn will depend very much on how the Brexit negotiations evolve." Carney also
said that the MPC is in the process of reviewing the possible range for the
equilibrium real interest rate in the medium term.
- Short sterling has opened 1 to 2 ticks higher as with decent flow seen in
white and red contracts. 
- Looking ahead, main event in the UK today will be release of 2nd estimate of
Q1 GDP. Consensus is for growth to remain at +0.1%.

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