Gilts are making a big move today as political uncertainty diminishes on reports of programs to increase government revenue. 10-year gilt yields are down 31.5 bps to 3.73%.
Technically, this is a break below the October double bottom and that's a good sign for the UK and the pound.
What is particularly puzzling through is the divergence in Treasuries and gilts today. US 10s were up 12 bps at the highs and the strong pull in opposite directions makes me think some kind of crowded pair trade was exited.
