When Can European Officials Start Discussing Government Withdrawal?
UK 10-Year Government Bond (Gilt) 3.840 -19bps (MoM) While government debt in the US, Europe and Asia mark sharp rebounds, UK gilts have merely turned to consolidation over the past month. Where pressure for Prime Minister Gordon Brown to call a national election have eased, speculation for monetary policy and growth forecasts have filled in. Forecasts of an economic recovery towards the end of this year and into the beginning of next year seem to be universal. However, speculation for the United Kingdom has held stubbornly depressed. When the IMF released its updated growth outlook for the next two years, the promising numbers helped buoy consistently pessimistic market participants. In line with the world-wide turn in output, the global financial regulator predicted a 4.2 percent contraction through 2009 (a slight reduction from the 4.1 percent projection in April); but the outlook for 2010 was upgraded from a 0.4 percent decline to 0.2 percent expansion. Absolute demand for risk-fre
