UK Gilts have opened mixed with yield curve...>

GILTS: UK Gilts have opened mixed with yield curve modestly flatter as short-end

edges lower while the long to ultra long-end ticks higher albeit in very thin

markets. UK 10-yr Gilt yield is 0.3bp lower at 1.33% according to Tradeweb.

- On LBC radio yesterday BoE MPC member Ian McCafferty said that current market

pricing for a couple of rate hikes over the next 2-years were acceptable "as a

rule of thumb".

- On the jobs front, Markit/REC said that candidate shortages continued to weigh

on staff appointments and that temporary billings rose sharply in July in its

latest jobs report.

- Looking ahead, there is a dearth of UK and European data and no officials are

scheduled to talk. However the DMO taps its 10-yr Gilt for Stg2.5bln this

morning and US sells its 10-yr T-note later as well. Citi analysts say there is

"limited relative value" in the 10-yr Gilt and looks rich vs swaps.

- Short sterling futures are steady to 1 tick higher with the exception of the

Dec21 contract which is 2 ticks higher.