Gilts have opened on the soft side.....>

GILT SUMMARY: Gilts have opened on the soft side with yields inching higher by

around 1.2bps across the curve as Sterling trades convincingly above $1.40 level

probably more on the lack of negative Brexit news then on any significant

data/new news. 10-yr Gilt yield is 1.2bp higher at 1.365%.

- Overnight saw rise in Japanese manufacturing PMI, the third consecutive

increase and a near 4-year high. While Jerome Powell was approved by the Senate

for the appointment of the next Chair of the Fed.

- Looking ahead latest UK labour market survey is released at 0930GMT and could

influence markets today. Consensus is looking at possibly another fall in

employment, which would be the first 3 consecutive falls since late 2012/early

2013, but on the flip side there being risk unemployment might drop to 4.2% if

participation rate nudges lower.

- There has not been much movement in UK breakevens so far this morning, while

swap spreads are trading mixed.

- BoE Carney is in Davos but is not scheduled to speak until Friday afternoon.