Little real opportunity on gilt front

The outlook for gilts appears fairly lacklustre. The long end of the yield curve will probably suffe...

The outlook for gilts appears fairly lacklustre. The long end of the yield curve will probably suffer from deterioration in the UK's public finances with higher spending likely to coincide with lower tax revenues. Increased speculation over the UK's participation in euro is also likely to cause yields on 30-year gilts to rise towards those of their counterparts in Germany. The prospects for short-dated gilts also seem fairly limited. While domestic demand remains stronger in the UK than it does in other major economies and significant inflationary pressures remain, it seems unlikely the B...