Gilts open lower once again, seen......>

GILT SUMMARY: Gilts open lower once again, seen weighed ahead of Bank of England

monetary policy decision and release of MPC minutes, with markets increasingly

pricing in a hawkish meeting and risk of a 6-3 vote for unchanged rates.

- Yields are pretty much uniformly 1.3bp higher across the curve.

- Main event will be the BOE decision and release of MPC minutes. Majority of

banks see the MPC voting 7-2 to leave rates unchanged, however, markets seen

priced for a more hawkish 6-3 vote (with Haldane joining McCafferty and Saunders

in calling for a rate hike) and/or a hawkish tone to the minutes, following the

higher than expected CPI print for August.

- Elsewhere, in a speech last night, Chancellor Hammond said that "Britain will

reject "protectionist" agendas from the EU in favour of "forward-leaning"

proposals when it comes to supervising financial markets after Brexit, but did

acknowledge legitimate concerns that the EU has.

- There has been some decent early flow in front-end of the short sterling strip

with buying in Sep7 offset by selling in both Dec7 and Mar8 contracts.