Gilts opening modestly higher led by...>

GILT SUMMARY: Gilts opening modestly higher led by the middle to long-end of the

yield curve supported by continued speculation of upheaval in the Trump

administration leaving the market cautious on risk. 10-yr Gilt yield is 1.3bp

lower at 1.423%.

- There has been little domestic news or data seen to direct markets this

morning and with the delayed opening of Eurex volumes have been very light.

Attention today will turning to release of Eurozone final February inflation at

1000GMT and then on US open with release of US housing starts and industrial

production data.

- Brexit negotiations continue in Brussels and look set to carry on over the

weekend as UK and EU hope to agree a transitional agreement at next week's EU

summit. However, with the UK releasing a meeting schedule on issues relating to

the Northern Ireland/Ireland boarder that go into third week of April,

speculation is that an agreement will not be agreed.

- Breakevens are steady to higher with the 5-yr 1.7bp wider, while swap spreads

are little changed so far.