Gilts have opened on the back foot for a......>

GILTS: Gilts have opened on the back foot for a second consecutive day, weighed

by mild risk-on sentiment as European stocks edge higher and BTPs extend Mondays

rally. 10-yr Gilt yield is 2.0bp higher at 1.427% according to Tradeweb, and is

leading the rest of the yield curve higher.

- Overnight saw UK BRC like-for-like sales drop to 0.2% in August from 0.5% in

July with consumers seen felling pressure on disposable incomes and opting to

reduce purchases of discretionary non-food items.

- Little new update on Brexit so far, however, it is speculated that Chancellor

Hammond may need to produce his budget as early as next month to avoid a clash

with possible last minute Brexit talks.

- Looking ahead, there is construction PMI data released at 0930BST with

consensus looking for a fall to 54.9 from 55.8, but with risk of a larger

decline following yesterday's disappointing manufacturing PMI numbers. Later

this afternoon will see BoE Governor Mark Carney along with Haldane, Saunders

and Tenreyro at the TSC to answer questions on August inflation report. Carney's

time at the Bank may also be discussed.