Gilts have opened modestly lower.......>

GILT SUMMARY: Gilts have opened modestly lower with the yield curve bear

flattening as the short end underperforms the middle to long-end of the curve as

markets react to comments from BoE Dave Ramsden in a Sunday Times interview.

10-yr gilt yield is 1.1bp higher at 1.532%, while 2-yr is 1.4bp higher.

- BoE Ramsden (voted to keep rates at .25% in November) said that rise in

interest rates will need to be swifter than he thought following sings of

accelerating wage growth.

- Pushing against the lwoer move however, are rising BRexit concerns as Labour

leader Jeremy Corbyn is expected to put further pressure on PM May when he gives

a speech later today on his party's potion on Brexit and trying to agree a new

type of customs union with the EU after the UK has left.

- While European Council President Donald Tusk said Britain still did not

understand that it could not 'have its cake and eat it', as he writes-off PM

May's post-Brexit trade deal plans. 

- Looking ahead, UK Finance (BBA) release latest mortgage approval data at

0930GMT, with consensus seeing a small rise to 37k in Jan from 36.1k.