Gilts have reversed opening modest gains......>

GILTS: Gilts have reversed opening modest gains likely weighed by the recent

large Gilt future block that was posted (6,335 G U8 @ 123.18). UK 10-yr gilt

yield is 1bp higher at 1.296% with the G U8 last 10 ticks lower at 123.04. 

- Yields across the curve are in the region of 0.9bp to 1.2bp higher.

- UK data today is limited to Bank of England money supply, credit conditions 

and mortgage approval data at 0930BST, before BoE monetary policy decision,

statement and August inflation report are released on super Thursday.

- Mar20 through to Sep 21 short sterling futures are 2 ticks lower while front

end remains anchored.

- Away from the markets, the newspapers have been full of latest Brexit news

which overall would probably not make good reading for Theresa May. The Times

reports that Britain has privately conceded that EU judges will be legal arbiter

of disputes over payments to Brussels and the residency rights of more than

three million European citizens. PM May is facing a backlash from grassroot

conservatives, while the Cabinet has drawn up a "fallback" option to the

Chequers plan according to the Telegraph.