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

GILT SUMMARY: Gilts have opened modestly lower albeit in a subdued start to

London trading session as markets have a mild risk-on tone on hope that the US

and China can find a solution to the trade dispute. Yield curve has shifted

higher by around 1.5bps with the 10-yr currently 1.6bp higher at 1.46%.

- There is a dearth of UK data today, however brexit is never far from traders

minds, and it will be the same today as ex-PM Blair is expected to call (once

again) for a second referendum on any EU deal that is struck, while Labour

shadow Brexit minister Starmer is also expected say that his party will table

amendments to the EU withdrawal bill aimed at stopping the UK from exiting the

EU without a deal. While PM May is due to give a statement to the House of

Commons on the EU Summit.

- There also might be comments from BoE Haldane as he takes part in a town hall

event in Scotland today

- BoE also continues its APF re-investment operation this week with the 3-yr to

7-yr sector today for Stg1.22bln which could underpin the short-end.