Gilts have started Friday on a.........>

GILT SUMMARY: Gilts have started Friday on a positive footing, squeezing higher

likely on the back of modest risk-off sentiment flows while at the same time

digesting latest news on Brexit. 10-yr point on the yield curve is so far

leading the rally with yield 2.4bp lower at 1.522%.

- The crunch Brexit sub-committee meeting at Chequers lasted eight hours and

everyone left happy according to reports from the BBC, but with only "baby

steps" taken rather than there being a huge breakthrough. PM May is now expected

to give a speech later next week on the UK's Brexit position, however Jeremy

Corbyn could spoil the party with a speech scheduled for Monday.

- Although it appears the European Union has pre-emptied what the UK is going to

say and that the "three basket approach" plan muted by the UK is a non-starter

and are not "compatible with the principles in the European council guidelines".

- Looking ahead there is no data from the UK today, although BoE Ramsden takes

part in a panel discussion on productivity from 1200GMT. Eyes will also be on

Eurozone final Jan inflation data at 1000GMT.