Comment: Suddenly this month some have belatedly woken to the benefits of Gilts, especially the juicy yields on short-dated ones (benchmark two-year peaked at 5.60%). This might explain this week’s jump in Short Sterling futures prices, blindly following where others lead. The thinking is probably wrong, lower Gilt yields caused by a deteriorating economic outlook centred on the financial sector. It does however explain the inversion of calendar spreads. Three and six-month Libor remain stuck

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