Gilts have opened Monday slightly on the......>

GILTS: Gilts have opened Monday slightly on the back foot led by the 10-year

part of the curve as markets digest latest political comments on Brexit and

global trade. 10-yr Gilt yield is 0.6bp higher at 1.334%.

- The International Trade Secretary Liam Fox said that the chance of a no-deal

Brexit was 60-40 as he complained about the the "intransigence" of the European

Commission. However according to the Guardian Downing insisted PM May is

confident of securing a Brexit deal with Brussels. 

- While the FT reports that the EU might "soften its Irish back stop power" in

order to avoid a no-deal Brexit.

- Turning to the markets there is little UK economic data released this week as

we hit the depths of summer, however BoE's McCafferty part-takes in a radio

phone in on Tuesday and the DMO taps its 10-yr Gilt on Wednesday for Stg2.5bln.

- Short sterling strip is steady to 1 tick lower in very light volume.