Gilts have opened modestly higher......>

GILT SUMMARY: Gilts have opened modestly higher with the yield curve shifting

lower by around 2.0bps as markets continue to digest the breakthrough on Brexit

talks and how quickly a possible free trade deal can be agreed. The March Gilt

future has now fully recovered Friday's losses with 10-yr Gilt yield currently

2.2bp lower at 1.256%.

- Over the weekend Brexit Secretary David Davis said that he wants a Canada

plus, plus, plus trade deal with the EU that included an agreement on financial

services and was optimistic the deal could be struck within a year. Davis also

said that the breakthrough in Brexit talks isn't binding and that the exit

payment is contingent on reaching a free trade agreement.

- While PM May is expected to tell the house of commons later today that there

is a "new sense of optimism" on Brexit talks and the EU27 should be signing off

that sufficient progress has been made at the end of this week.

- There is little data from the UK today, however there are a raft of data

releases over the next few days plus a number on monetary policy decisions to

keep the markets interested this week.