Gilts opened a touch lower but have....>

GILT SUMMARY: Gilts opened a touch lower but have quickly squeezed higher

supported by a risk-off sentiment flows as pressure mounts on PM May and her

government on Brexit and some soft data from both the UK and France. 10-yr Gilt

yield is 2.1bp lower at 1.539%.

- According to a Bloomberg story eight Tory MPs (rebels) have backed an

amendment to the Trade Bill to keep UK in a customs union with the EU. The Tory

government have a working majority of only 13 MPs and so anymore joining the

rebels could lead to a heavy defeat for PM May.

- While in Brussels Eu chief negotiator Michel Barnier has called on David Davis

to travel to Brussels to work on the transitional agreement that is in danger of

missing the March deadline. While the Eu is set to release its draft Brexit deal

today that is expected to be rejected by PM May.

- Overnight saw GfK consumer confidence and Lloyds business barometer slip lower

and shop prices deflation rose. While French flash inflation surprised to the

downside.

- There is no further data from the UK today, so all eyes will be on EMU CPI.