Gilts opening on the soft side with....>

GILT SUMMARY: Gilts opening on the soft side with the yield curve bear

steepening as the long-end comes under the most pressure, however most in the

market are looking ahead to latest UK unemployment and average weekly earnings

data.

- There was little direction seen overnight from Asian with only Dallas Fed

President Robert Kaplan comments on raising interest rates -- patience may be

required, and the Fed's balance sheet -- process of starting run off should

start very soon.

- While the main political news from the UK, its the announcement that the UK

government does not want Irish boarder posts, but critics have complained that

it lacks detail.

- As for today's UK jobs data, MNI median is for unemployment for June is to

remain at 4.5%, but with a slight risk seen that it could slip to 4.4%. While

average weekly earnings is expected to remain at 1.8%, leaving real wages in

negative territory.

- 10-year Gilt yield is currently 1.6bp higher at 1.101%.