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To: KyrosL who wrote (9727)2/15/2000 2:07:00 PM
From: pater tenebrarum  Respond to of 42523
 
not so. the gilts have been rallying because the market anticipates that Britain will eventually join the Euro. that has intensified the yield curve inversion there which was originally precipitated by the BoE's tightenings. note that the gilt has a 10-year maturity...it is probably quite reasonable to expect Britain to join by then, and that means gilts should yield more or less the same as comparable Euro - denominated bonds.