June Gilt future opened little.........>

GILT SUMMARY: June Gilt future opened little changed Wednesday but has since

squeezed lower as markets focus on key UK data releases this morning and then

all important Fed monetary policy decision later this evening and its updated

dot plot curve. Gilt yields have shifted higher by around 2bps so far, with

10-yr Gilt back above 1.50% level for first time in over a week at 1.504%.

- Overnight saw the latest XpertHR report that said employers are predicting pay

rewards of 2.5% in 2018, the highest level in nearly 4-yrs, which could be

adding to the mild pressure on Gilts seen this morning.

- Attention though is on the release of UK Jan labour market report which

includes average weekly earnings and change in employment at 0930GMT. MNI

forecasts have analysts expecting no change in the ILO unemployment rate at

4.4%, however, expect earnings including bonuses to rise to 2.7% from 2.5%.

- At the same time UK public borrowing for February is released with consensus

looking for a Stg1.6bln surplus following Stg11.6bln in Jan.

- Then the focus will be on the Fed FOMC meeting and whether they hint at three,

four or even five rate hikes this year.