Gilts have opened modestly lower led by the...>

GILTS: Gilts have opened modestly lower led by the 10-yr sector as markets trade

with a mild risk-on tone as Turkish Lira rallies 5% this morning and BTPs

recover some of recent losses on hopes of an agreeable budget. 10-yr Yield is

0.7bp higher at 1.271% according to Tradeweb with 2s/10s 0.6bp wider and 10s/30s

0.4bp tighter.

- Main focus today will be release of latest UK Labour report with consensus

looking for the ILO unemployment rate remaining steady at 4.2%, for employment

to rise 93k in last 3-months and for average weekly earnings ex bonus to remain

steady at 2.7%. Risk though is seen in the unemployment rate edging lower to

4.1% q/q and for employment to rise by over 100k.

- In other news The Times  have reported that the European Research Group,

headed by Brexiteer Jacob Rees-Mogg, are to publish their own "positive"

blueprint for a hard Brexit. It is expected to have the backing of between 60 to

80 Tory MPs and could be pressure on PM May when it is released next month.

- Short sterling futures are steady to 1 ticks lower, with the strip little

changed.