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Gilts have opened under pressure, with........>

GILTS
GILTS: Gilts have opened under pressure, with yields rising around 1bp across
the curve as markets dismiss overnight rally in US Treasuries and concentrate on
UK and European issues. UK 10-yr Gilt last at 1.439%.
- The main news overnight night has been the appointment of Giueseppe Conte as
Italian PM and a Times news story that Theresa May will ask the European Union
for a second Brexit transition period to run until 2023 to avoid a hard border
in Ireland.
- The main event today will be release of UK Apr retail sales at 0830GMT and it
appears everyone is hoping for a rebound from March's disappointing numbers and
maintain the possibility of the next rate hike coming in August.
- Short sterling strip has moved around this morning, but is currently steady to
higher with curve bull steepening though as white and red contracts outperform
green and blues.
- Both breakevens and swap spreads are little changed so far Thursday.

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