Gilts have opened steady to higher.....>

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

flatter as the long-end outperforms, albeit in light volumes as markets await

key Fed Chair Powell testimony later this afternoon. 10-yr Gilt yield is 0.6bp

lower at 1.503%, while 2s30s is 0.8bp flatter.

- BoE Jon Cunliffe, the second MPC member who voted for rates to remained

unchanged in November, did not touch on monetary policy in his speech last night

and so gave no indication if he has changed his view like that of Dave Ramsden.

- There is a dearth of UK data today, so attention will be on German flash

inflation and Eurozone consumer confidence data, before eyes turn to Powell's

testimony this afternoon.

- Newswires are awash with Brexit once again and look to be adding to pressure

on Theresa May to deliver a strong clear message at her speech on Friday. Latest

talk is that the EU will release a draft Brexit treaty on Wednesday that's is

likely to cause problems within her own party and the thorny issue of the

boarder between N.Ireland and Ireland.