Gilts have opened on the back-foot, weighed...>

GILTS: Gilts have opened on the back-foot, weighed by continued improvement in

risk sentiment and as UK GfK consumer confidence ticked higher. 10-yr Gilt yield

is 4.8bp higher at 1.273% according to Tradeweb and is leading the rest of the

curve higher. 2s/10s is 1bp steeper and 10s/30s 1bp flatter.

- UK consumer confidence wiped out all of April's loss in May, reverting back to

the the 12-month high set in March, a survey by GfK found. GfK Consumer

Confidence Index rose by two points to -7 in May, driven by increases in all but

one of the headline index's contributing components, with weaker appetites for

major purchases the only blemish on the month.

- However offsetting this slight optimism was a FT article that Europe's biggest

industrial companies have warned Theresa May that they will not invest in

Britain as long as there is uncertainty over the terms of its departure from the

EU.

- Short sterling strip has opened lower, curve steeper as green/blue contracts

underperform whites

- Looking ahead BoE release latest lending data at 0930BST