Gilts remain on the back foot ahead....>

GILT SUMMARY: Gilts remain on the back foot ahead of the main event risk of the

day, namely the ECB monetary policy decision and press conference. Yield curve

though is now bear flattening as the short-end takes the brunt of the selling.

- 2-yr Gilt yield is +1.3bp at 0.82%, 5-yr +1.5bp at 1.174%, 10-yr +0.9bp at

1.503%, 30-yr +0.6bp at 1.906% and 50-yr +0.7bp at 1.687%.

- Gilts opened little changed, by then slipped lower on light consistent

selling, weighed by overnight news that US administrations was prepare to offer

Mexico, Canada and some other countries an exemption of steel and aluminium

tariffs.

- There has been a dearth of UK data or official speakers this morning, so

attention has be on ECB monetary policy decision and press conference this

afternoon and if there will be any change in its forward guidance and

macroeconomic forecasts.

- Breakevens are around 1bp wider, supported by a slightly weaker pound, while

swaps spreads are little changed.