Gilts opening marginally higher........>

GILT SUMMARY: Gilts opening marginally higher Monday with the yield curve

shifting around 0.5bp lower as markets digest latest positioning of Brexit

negotiations following EU summit were PM May met with EU's Tusk. 10-yr Gilt

yield is 0.5bp lower at 1.245%.

- PM May has tried to put a positive spin on latest talks with the FT reporting

May saying that "there are still issues across various areas to be resolved but

there's been a positive atmosphere in the talks and a genuine feeling we want to

move forward together". EU president Tusk though says there is still an upward

struggle to progress talks with the Irish boarder being a particular contentious

issue. The political concerns in Ireland, where fresh elections are a

possibility are not helping matters either.

- While the FT reports that European banks have removed E350bln of UK related

assets from their balance sheets in just 12-months and this is expected to

increase in run-up to Brexit.

- There is a dearth of UK data released today, although BoE Haldane is due to

give a speech in Birmingham education and communication strategy at 1430GMT.