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

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%.