Gilts have pared some of its opening..........>

GILTS: Gilts have pared some of its opening losses, but remain in negative

territory, weighed by US 10-yr yield rising back above the 3% level and

expectations of the launch of a new ultra long conventional Gilt. 10-yr Gilt

yield is 0.5bp higher at 1.484%.

- Gilts possible also seen underpinned by continued concern over the Brexit

negotiations with the Telegraph reporting that PM Theresa May has admitted to

Conservative MPs that Brexit negotiations are at an impasse because neither of

her current options for a customs deal with the EU will work.

- Main event today will be release of March labour data at 0830GMT and if there

has been another rise in average weekly earnings. While markets will also be

keeping an eye out for possible launch of a new 2071 Gilt via a syndication

deal.

- Short sterling strip is little changed so far Tuesday.