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

GILTS: Gilts have opened on the front foot, underpinned by flight-to-quality bid

as markets fear Italian pollical risks once more. Curve is little changed as

yields have shifted lower by around 2bp across the board. 10-yr Gilt yield

currently at 1.494%.

- Geo-political risks have also notched higher overnight as North Korea cancels

summit with South Korea citing ongoing military trails and also threatens to

cancel summit with the US if they continue to make one-sided demands on nuclear

weapons.

- Domestically, Brexit Minister David Davis said that PM May's favoured plan of

a customs partnership with EU could be illegal under internal law, the Times

reported. While The government have announced that a Brexit white paper will be

published in June, ahead of the EU summit. 

- There is only BoE agents summary of business conditions released at 0930BST

today, so attention likely to be on Europe/Italy and then US data this

afternoon.