UK

Oct/6 we advised that clients own (L - S) the UK curve and, or sell the Gilts outright. That trade performed very nicely and a full exit was recommended Oct/28 (10 yr, 2.62%, 2 - 10, +202). Since that date of course the curve has come in with prices much firmer (10 yr, 2.19%, 2 - 10, +166).  Leave outrights alone but it is now time to again own the curve. There is more muscle to the UK than most understand, even including likely negative impact from our EU friends.

Robert Craven