Gilts opened little changed but have...>

GILT SUMMARY: Gilts opened little changed but have started to squeeze lower in

light volume as overnight newswire reports that US administration could offer

exemptions to its metal tariffs to Mexico and Canada and possible other

countries if it served in US interests. 10-yr Gilt yield is 0.6bp higher at

1.50%, while curve is modestly flatter.

- Overnight saw little direction, however RICS house price balance dropped to

zero in February from a downwardly revised 7 (8) in January, while the New Buyer

enquiries measure, which tends to be a good front-runner for Bank of England

mortgage approvals, fell for an eleventh consecutive month resulting in a net

balance reading of -16%.

- There is a dearth of UK data or official speakers scheduled for today, so

attention will be on ECB monetary policy decision and press conference this

afternoon and if there is any change in its forward guidance and macroeconomic

forecasts.

- Any update on US plans to impose steel and aluminium tariffs will also be

closely eyed.