Gilts opened slightly lower, but have since...>

GILTS: Gilts opened slightly lower, but have since faded the move as market

digest the FOMC rate decision and number changes to its dot plots and statement

which appeared to be on the hawkish side of expectations. UK 10-yr Gilt yield

last -0.4bp at 1.355% according to Tradeweb.

- The main take away form the FOMC decision/statement was the more higher in the

2018 dots to show a total of 4 rate hikes this year and 3 next year and a

removal of the phrase "the federal funds rate is likely to remain, for some

time, below levels that are expected to prevail in the longer run,"

- The UK government managed to win the remaining votes on amendments to the EU

Withdrawal Bill in the House of Commons with a number of Labour MPs dissenting.

- Looking ahead UK retail sales for May are released at 0930BST with total sales

forecast to rise by 0.5% on the month. After that attention will turn to key ECB

monetary policy decision and press conference.

- Key will be to what extent the ECB have discussed QE options and if any

concrete decisions have been made.