Gilts have opened steady to lower......>

GILT SUMMARY: Gilts have opened steady to lower with the yield curve modestly

steeper, weighed by fade in risk-off sentiment as criticism of Trump's policy of

imposing tariffs on steel/aluminium and possibly starting a trade war grows in

the US. 10-yr Gilt yield is 1.3bp higher at 1.508%.

- According to Bloomberg though the EU has threatened to slap tariffs on a range

of US products ranging from jeans to bourbon.

- In the UK, retail sales held steady at 0.6% y/y in February with non-food

sales continuing to suffer from higher food costs, said the BRC.

- Looking ahead, there is a dearth of UK or Eurozone data, however Brexit

negotiations continue in Brussels within renewed hope that UK/EU could be close

to a transitional deal following PM May comments in Parliament yesterday. While

BoE Haldane speaks but after market closes at 1815GMT.

- The DMO re-open 30-yr 1.50% 2047 Gilt for Stg2.25bln today, so could see some

underperformance around this area this morning. 

- Breakevens have opened slightly wider as linkers continue to outperform

nominal Gilts. Swap spreads are mixed.