The month had seen a number of potentially significant events. Reactions to them had been mixed but, on the whole, relatively limited, and the improvements in market sentiment seen over recent months had remained broadly intact. UK asset prices had reacted more to global than domestic events. 3 The longer-term government bond yields of those countries regarded as the most creditworthy remained close to historic lows. Ten-year gilt yields had risen at the beginning of the month but had fallen back following the inconclusive Italian election to end the month broadly unchanged. The downgrade to the United Kingdom’s ... (full story)