Gilts opened marginally higher, but....>

GILT SUMMARY: Gilts opened marginally higher, but gave back its gains and is

trading little changed awaiting UK Labour data. The yield on the 10Y Gilt is

currently trading 0.2bp higher.

- The markets are still digesting comments made by BOE Governor Mark Carney in

front of the Treasury Select Committee that inflation will peak in a couple of

months. The FT has picked up on comments from Brexit Secretary David Davis that

the EU is "deliberately stalling talks in order to squeeze more money from the

UK." While the Telegraph quotes London Stock Exchange saying that firms will

relocate if a transition deal is not agreed upon by the end of the year.

- The key focus for markets today will be the UK Unemployment data and Average

Weekly Earnings data released at 0930BST. MNI survey of analysts expectations

forecasts unemployment rate at 4.3% with Average Weekly Earnings ex-bonus

ticking lower to 2.0% from 2.1%.