Gilts have opened Monday on the front foot....>

GILTS: Gilts have opened Monday on the front foot supported by mild risk-off

flows as weekend political news trumps announcement that US will hold off on

imposing tariffs on Chinese imports after the two countries made progress on

trade issues during two days of talks. UK 10-yr Gilt yield is 2.2bp lower at

1.478% and is leading the rest of the curve lower according to Tradeweb.

- The Times reported that Conservative MPs are preparing for another snap

general election as they fear the Brexit deadlock will become insurmountable for

the prime minister. While in Italy reports that the 2 anti-establishment parties

have agreed on a nominee for a Prime Minister has weighed on BTPs so far this

morning.

- There is a dearth of UK or European data and official speakers today so market

likely to be watching for any new political headlines crossing the wires.

- Short sterling strip is higher by 0.5 to 2 ticks, with curve modestly flatter

as blue contracts outperform whites.