So Gilt are trading on very heftily negative real yields in RPI terms, and the market still takes little heed of this inflation trend .. crazy or what?
Been in this 120.48 to 121.48 range since June 21st now - goin nowhere. Besides BOE going for temporary inflation in their forecast, need a few more months to worry the market. If we break the above range we should get going one way or the other.
UK PRESS: Pimco, the world's biggest bond investor, has turned bullish about Britain, reversing its position in January, when it warned that government gilts were resting "on a bed of nitroglycerin", the Guardian reports. The California-based asset manager is more optimistic about investing in Britain following the drastic budget cuts announced by the government while, at the same time, Europe's debt woes make other sovereign bonds relatively less attractive, the paper says.