Gilts opened higher but swiftly........>

GILT SUMMARY: Gilts opened higher but swiftly moved lower as German and US bond

yields jumped.

- Sep8 future is off 14 ticks at 123.75, having risen to 123.87 at the open.

- A bit of an uptick on Foreign Minister Hunt's comments on BBC radio,

reiterating cautious optimism on getting a Brexit deal, but cautioning that

chances of no deal are 'not negligible'.

- Curve slightly steeper with a 0.4bps rise in 2-Yr Gilt yields to 0.709%, with

10-Yrs up 0.7bps to 1.230%.

- DMO released minutes on consultation meetings on Oct-Dec issuance with

Gilt-edged Market Makers and representatives of Gilt investors Monday. Unanimous

recommendation among GEMMs that next syndication should be a re-open of 1.625%

Oct-71 Gilt. Calendar to be announced on 31 Aug.

- Short Sterling futures a little weaker, most of the strip down 1 tick.

- UK July public sector borrowing data the highlight of the morning. Aug-28

linker auction up later this morning for Stg1.1bln.