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Gilts opening lower Wednesday, taking cue.....>

GILTS
GILTS: Gilts opening lower Wednesday, taking cue from weaker US Treasuries
overnight and at the moment ignoring renewed Brexit concerns that an Irish
boarder deal might not be agreed by June and more pressure being put on PM May
regarding the customs union.
- 10-yr Gilt yield is 2.8bp higher at 1.433% and is leading the rest of the
curve higher.
- Data overnight saw BRC shop prices marking 5-years of deflation as prices were
lower for the 60th consecutive month. There is only construction PMI data from
the UK today but is unlikely to give much indication on the current state of the
economy. Service PMI is released tomorrow.
- The special Brexit cabinet meets today to discuss the 2 preferred custom
options that are on the table. A group of Tory Brexiteers though have delivered
an "ultimatum" demanding that PM May drop one of them, a 'customs partnership',
as it would mean the UK would not be able to agree new trade deals.
- Markets also looking ahead to Fed monetary policy decision and statement later
this evening.

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