…. part XII of an increasingly regular series.
And Monday finds the yield on the 10-year gilt below 4 per cent.
Somebody tell Kenneth Clarke.
In fact, someone tell the former chancellor to have a look at this desk note from RBS:
Weekend press good for Gilts: a) talking up the Liberal Democrats right wing credentials and how they form more coalitions with Conservatives than Labour in councils, so allegedly not that Budget-negative/sclerosis if Con-Lib coalition, which is most likely outcome at this moment according to pollsters; b) polls shift 1-2% back to where they were pre-debates. Have a look at Bloomberg bumper story on deflation/low inflation and how yields are lower than historic and about buyers at 4% 10yr US (you would not think it for how many bond bears argue for higher yields).