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

GILT SUMMARY: Gilts have opened modestly higher with yields around 1.5bp lower

across the curve, supported by renewed opening of different Brexit opinions

within the Tory government. 10-yr Gilt yields are 1.5bp lower at 1.397%.

- It feels like we are back to some domestic political risk with Tory Brexiteers

not happy with either David Davis handling of the negotiations or with comments

made by Chancellor Philip Hammond of there should be only "modest" changes after

Brexit. While according to the Guardian there are rumours of another possible

Tory coup to oust PM May.

- Carney was interviewed on BBC Radio 4 this morning and said that the UK

economy is feeling a short-term Brexit effect and that it could "recouple" with

the global pickup in growth if there is a good Brexit deal.

- Looking ahead the key data release will be UK first estimate of Q4 GDP at

0930GMT with consensus seeing a 0.4% q/q outcome. Comments from Brexit Secretary

David Davis outlining terms for Brexit transitional negotiations and US

President speech in Davos will also be eyed.