/ POV: With the rise in geo-political.........>

GILTS: / POV: With the rise in geo-political tension in Asia overnight as North

Korea fires its latest missile over the northern part of Japan and the difficult

start to the third round of Brexit negotiations in Brussels, has seen the yield

on the 10-yr Gilt slip below 1.00% level for the first time since June 26. This

is also not too far from 2017 low of 0.923% seen on June 14

- Further falls in 10-year Gilt yield could be limited despite the re-investment

of cash flows from the BoE's QE programme starting next week and the redemption

of August 2017 and Sep 2017 Gilts, as markets might have already priced a

majority of this in and could start looking ahead to key central bank meetings

from the ECB (Sep 7) -- possibly start discussing options on QE and Fed (Sep 20)

-- announcement on balance sheet reduction expected.

- Before then however, BoE MPC member Michael Saunders, who voted for a 25bp

rate hike at last monetary policy meeting in August, speaks on Thursday morning

in Wales with latest UK data seen unlikely to change his current hawkish views.