Gilts have opened slightly higher......>

GILT SUMMARY: Gilts have opened slightly higher Monday but with little

conviction with a lack of direction seen overnight and as markets look ahead to

key events later in week. 10-yr Gilt yield is 0.9bp lower at 1.49%.

- The Main event for Gilts will be the Spring Budget by Chancellor Hammond on

Tuesday and the starting of the latest BoE APF re-investment programme today and

then the launch of a new 10-yr Gilt on Thursday.

- The Guardian has written about a number of reports that show the economy in a

different light compared to one expected to be given out in Hammonds Spring

Budget on Tuesday. The Guardian highlights that spending on Visa Cards during

February showed a fall of 1.1% and that the first quarter was on track to be the

"worst on record".

- Turning to the Spring Budget most analysts see borrowing for FY 2017/18 to

come in well below OBR forecasts and give the Chancellor some wriggle room for

spending in future years. When the budget announcement has been completed the

DMO will then release its initial Gilt remit for FY 2018/19 and once again

analysts this this falling compared to projections at the November Budget.