US and UK rates continued to fall
If you're going to short bonds, buy life insurance.
The shorts are being carried out in the front end of the UK curve once again today. Comments from MPC members suggest that rates hike are coming soon (if you can trust them) but that's done nothing to stop the price action, which is almost certainly a short squeeze.
The pound is also lower today but not by nearly the same extent and not in line with front-end price action. Cable is down 36 pips to 1.3464 but up 40 pips from the low about 5 hours ago.
Some of that is because the US dollar is facing its own travails on falling yields. US 10s are approaching the October low in yield and that pattern looks like a head and shoulders top.
