Gilts opening weaker with yields.......>

GILT SUMMARY: Gilts opening weaker with yields around 2.5bp higher across the

board, pretty much wiping out Monday's gains as markets trade with a mild

risk-on tone. 10-year Gilt yield is currently at 1.353%.

- The main news overnight were comments from Fed's Kaplan that he has an "open

mind" for December policy meeting, need evidence inflation will reach target.

- Looking ahead UK construction PMI is released at 0930BST while Brexit

Secretary David Davies and Foreign Secretary Boris Johnson both speak at

Conservative Party conference this afternoon.

- EU's Juncker has already said in Brussels that there has not been sufficient

progress in BRexit talks to start taking about future trade agreement, while

newswires report that PM May's budget offer to the EU is conditional on agreeing

a trade deal.

- UK breakevens are modestly wider, while the front end of swap spreads are

slightly tighter .