Gilts have opened mixed with the.......>

GILT SUMMARY: Gilts have opened mixed with the yield curve steepening slightly

as the ultra long-end comes under the most pressure despite the risk-off

sentiment seen overnight in Asia. 10-yr Gilt yield is 0.1bp higher at 1.416%.

- Markets continue to digest yesterday's BoE monetary policy decision and MPC

minutes which analysts says confirms a May rate hike is firmly on the cards, but

that future communication could be more tricky

- There is a dearth of UK data today, however BoE releases its quarterly

bulletin at 1200GMT and BoE Vlieghe speaks in Birmingham at 1230GMT. Attention

will also be on US data this afternoon and any comments on trade tariffs, while

EU summit continues in Brussels were a Brexit transitional deal is expected to

get rubber stamped.

- It appears that the prospect of trade wars is leading the markets to predict

higher prices and therefore rise in inflation and this is clearly seen in

breakevens which are between 0.5-2bp wider this morning led by the 5-yr.