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

GILT SUMMARY: Gilts have opened slightly higher with the yield curve shifting

lower by around 0.5bp, however the markets are in wait and see mode ahead of UK

Chancellor Philip Hammond's Spring Budget release at 1230GMT. According to

Tradeweb 10-yr Gilt yield is 0.6bp lower at 1.495%.

- Asian markets were a little quiet as attention was on US data later today.

- 10-yr gilt yield have been trading around the 1.50% level since March 7 with

little domestic macroeconomic data seen to direct markets in either direction.

However this could change when Hammond delivers his Spring Budget and updated

OBR forecast for borrowing and UK GDP growth. The DMO also launch a new 10-yr

Gilt on Thursday for Stg2.5bln.

- At the Spring Budget most analysts see borrowing for FY 2017/18 to come in

well below OBR forecasts and for the DMO Gilt remit to show a fall in Gilt

issuance. Although further out the picture is more uncertain.

- After the Budget in the UK attention will then turn to release of US February

inflation data at 1330GMT.