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

GILTS: Gilts have opened steady to mildly higher with yield curve modestly

flatter as ultra long-end end sees early buying interest while short-end remains

anchored. UK 10-yr Gilt yield is 0.4bp lower at 1.263%.

- With little seen in the UK to direct markets, Gilts have taken cue from move

higher in US Treasuries overnight and solid start to German Bunds. Data from the

UK today is limited to mortgage approval data and CBI reported sales at 0930BST

and 1100BST respectively.

- UK Parliament has broken up for summer recess however, Brexit negotiations

continue in Brussels with Brexit secretary Dominic Raab expected to meet with

Michel Barneir on Thursday which could give more details on the Irish border

stalemate.

- Front end of the short sterling strip has coming under light selling pressure,

falling by 0.5 to 1 tick, while green and blue contracts are unchanged, as

markets get more confident about there being a rate hike next week. MNI PINCH

calculate market pricing a 92% chance of a 25bp rate hike by the BoE up from 78%

seen last week.