UK

Following the Bk of Eng surprise of 10/6 we recommended that clients look to sell UK debt, and, or, own (L - S) the curve. The 10yr Gilt then 2.31%, 2 - 10, +171, 2 - 30, +266. Last, 2.51%, +188, +279. Remain with these positions (or something similar). The Bk of Eng move will be seen to be in excess, especially considering UK price measures. Near term developments in the EU to contribute also, our view.

We prefer spreads, but then that’s up to the desk.
　

Robert Craven