Falling dollar stimulates overseas interest in gilts

uk gilts

A small rise in base rates is not going to have much negative impact on the UK government bond market during the course of 2004

UK gilts are bonds issued by the UK government to finance the budget deficit; that is, the difference between the money the Government raises and the money it spends. The budget deficit can swing wildly, as it is the difference between two very large sums of money; more money spent while taxes remain at the same levels means a bigger deficit, while more taxes raised while spending levels remain static results in a smaller deficit. The size of the deficit is also significantly impacted by political events such as elections, as there is a tendency for the deficit to grow as an election app...