Gilts have opened mixed with the short-end....>

GILTS: Gilts have opened mixed with the short-end edging lower weighed by

slightly hawkish tone of FOMC statement and BoE rate decision later, while the

10-yr and above sector edges higher and in-turn flattening the yield curve.

10-yr Gilt yield is -0.2bp at 1.390%, with 2s/10s 1.2bp tighter.

- FOMC statement said that growth was "strong" compared to "solid" at the last

meeting and that personal spending has "growing strongly" from having "picked

up", and indicated that Fed is likely to raise rates twice more this year

- There is UK construction PMI data at 0930BST before the key BoE MPC monetary

policy decision and release of statement and August inflation report at 1200BST.

- Markets and analysts are all expecting the BoE to raise rates to 0.75% from

0.50% today, so eyes will be the number of dissenters (if any), any changes to

growth and inflation forecasts and the first estimate of the neutral interest

rate or R*

- Short sterling futures are already opened with a little volatility with decent

volume seen so far in the red contracts (Sep19-Jun20) with some curve trades and

outright selling seen going through screens.