UK Gilts have opened higher led by the........>

GILTS: UK Gilts have opened higher led by the 10-yr sector, supported by

flight-to-quality bid as Italy economic/political concerns increase again.

Markets also continue to digest BoE's monetary policy decision yesterday. 10-yr

gilt yield is 2.8bp lower at 1.354%.

- BoE Carney's comments that Brexit could change the BoE thinking on future path

of interest rates helped to offset an initial hawkish 9-0 vote to hike rates to

0.75% and leaves markets watching and waiting for updates on latest UK/EU

negotiations. In a BBC radio 4 interview Mark Carney said that the chances of a

no deal Brexit was uncomfortably high but UK banks will be prepared.

- On that front, PM May and French President Macron are expected to meet today,

although how much PM May will achieve is open up for debate with report that

Macron is going to give no ground.

- UK service PMI is the main highlight for London markets this morning with

consensus looking for a slip to 54.7 in July from 55.1. So far the manufacturing

and construction PMI's have come in mixed. 

- In the afternoon attention turns to US non-farm payroll numbers