Gilts have opened on the back foot taking.....>

GILTS: Gilts have opened on the back foot taking cue from weak Us Treasuries

overnight and amid reports that the EU is discussing behind the scenes the

possibility of an extension to Article 50 as negotiations drag on. UK 10-yr gilt

yield is 1.8bp higher at 1.243% with yield curve modestly steeper as ultra

long-end underperforms the short-end, 2s/30s is 0.7bp wider.

- City AM reported that MEPs and officials from member states are discussing in

the backrooms of Brussels an extension to next year's Article 50 deadline to

avoid a cliff-edge Brexit.

- Attention this morning turns to retail sales data from the UK with consensus

looking for a 0.2% m/m rise in total sales in June, down from May's 1.3% m/m.

Risk though is seen to the upside due to warm weather and the start of the World

Cup.

- Short sterling strip is steady to 2 ticks lower led lower by move in green and

blue contracts.