Gilts open lower, led by the 10-year...>

GILT SUMMARY: Gilts open lower, led by the 10-year part of the yield

curve,taking cue from overnight sell-off in US Treasuries as markets react to

comments from Fed's Harker that he's "pencilled in" a rate hike in December and

his base case is for 3 more hikes next year. 10-yr Gilt yield is 2.6bp higher at

1.388%.

- Markets are also keeping an eye on events in Spain following the violence

scenes at Catalonia independence vote on Sunday.

- In the UK the key events will be the Conservative Party conference in

Manchester and PMI's over the next few days. Chancellor Hammond has already been

on the wires ahead of his party conference speech saying that the underlying

health of the economy is strong, but working through difficult period. Pledges

help for the economy through difficult Brexit process and for first time buyers

trying to get on the housing ladder.

- UK breakevens are marginally wider while swap spreads are tighter led by the

1.5bp tightening in the 10-yr, 15-yr and 30-yr areas.