The 10-Year Gilt yield is little.......>

GILT SUMMARY: The 10-Year Gilt yield is little changed on a quiet Monday, there

is however, a very subtle steepening of the yield curve as Gilts respond to a

similar movement in core European debt.

- Early reactions to the North Korean threat were small and were not built upon.

- The only significant swap flow was a Stg 79mln payer of 5Y at 1012BST.

- Eurosterling contracts strengthened by around 1 cent across the reds and

greens.

- Over the weekend, there were reports that the UK would ultimately accept a

Brexit bill of Stg50bln but on Sunday, David Davis called this suggestion

'nonsense'.

- UK Construction PMI data for August declined to 51.1, its lowest since Sept

2016 but the market reaction was muted.

- Markets are awaiting details of the 50Y syndication at 1530BST. Additionally

this afternoon, the BoE buys 8 Gilts in the 3-/7-year category for Stg1.125bln

size. Maturities include: 3.75% 2020, 1.50% 2021, 3.75% 2021, 4.00% 2022, 0.50%

2022, 1.75% 2022, 0.75% 2023 & 2.25% 2023.