Gilts have opened slightly higher but are.....>

GILTS: Gilts have opened slightly higher but are fading the move as I type as

markets look ahead to key Bank of England monetary policy decision and release

of quarterly inflation report. UK 10-yr Gilt yield last 0.3bp lower at 1.463%

according to Tradeweb.

- Most bank analysts expect a "hawkish hold" from the BoE as they would still

want the markets to price in a least one rate hike this year with any sign of a

dovish statement could lead markets to believe rates will remain at 0.50% for

the remainder of the year.

- Overnight saw release of latest RICS house price balance which did not give a

pretty reading. The balance dropped to -8 a 5.5-yr low in April from 0 in March

with London seeing the largest slowdown. 

- Ahead of the BoE decision, UK industrial production and trade balance data for

March are released at 0930BST. Consensus is for industrial production to remain

unchanged on the month, while the trade balance is expected to widen.