Gilts have opening higher Tuesday,.....>

GILT SUMMARY: Gilts have opening higher Tuesday, supported by overnight bid in

US Treasuries following a number of US Fed speakers and slight risk-off

sentiment on renewed North Korea missile warning. 10-yr Gilt yield is 1.9bp

lower at 1.242%.

- There are also concerns for Brexit negotiations moving forward to the next

stage in December as there is still disagreement between UK and Ireland over the

boarder issue.

- On a slightly brighter note though, the Bank of England FPC said in its

November Financial Stability Report published this morning that UK banks would

be able to withstand a disorderly Brexit and that no banks need to strengthen

its capital position. In the press conference Carney said that there had been

heightened risk premia for some UK assets but not for the UK Gilt market. Carney

did warn however that a disorderly Brexit would mean "pain for the UK".

- Once again there is a dearth of UK data today, so attention likely to be on

any Brexit related newswire headlines, path of the US Tax bill (not)through the

Senate and German and US data.