UK and US still reliant on consumer

Fund manager's comment

July witnessed one of the worst months ever in the US Treasury market. This was mirrored by falls in...

July witnessed one of the worst months ever in the US Treasury market. This was mirrored by falls in the UK, although not as severe - the 10-year yield rose 0.36% in the UK compared with nearly 1% in the US. The trend to curve steepening in the UK, which has been in place for some time, went into sharp reversal as the overall level of yields rose, and in the month in which the Bank of England, to the market's surprise, cut interest rates to 3.5%, the lowest level for nearly 60 years. Yield spreads have continued to grind tighter, with virtually every sector of the market outperforming e...