Higher for longer. That is the message from the markets over the p??t week.
Strong employment growth in America, sticky inflation in Europe and even more so ?n th? UK, wil? combine to f?rce central banks to push interest rates up fu?ther worldwide - and p?obably hold them ?igher f?r a whi?e t?o.
The markets ?idn't like ?t.
Bond yields ?re ?p, with th? 10-ye?r yield on US treasuries ?bove 4 ??r cent, and our 10-ye?r gilts close t? 4.75 per cent. Yields on two-year and five-yea? gilts ?re h?gher sti?l.
As f?r equities, t?? FTSE 100 index h?d its worst day th?s ?ear on ?hursday, ?nd was off again on ?riday.
It ?as been ?n uncomfortable validation ?f t?e rule of 'sell ?n Ma? and go awa?', tho?gh a?tually thi? year you ?ould ?ave done ?ven b?tter to sell in Ap?il.
?he main reason for equity gloom ?s that t?e markets now reckon that the central banks are prepared to push t?e main economies into recession, ?f that is the pr?ce for getting inflation ?ack t? the target of 2 p?r cent.

[/img] A?e s?me savers' big pots the reason ?hy the t?e UK economy...[/url]
[/img] ?ound rises b?ck a?ove $1.28 as weaker-than-expected U? jobs..." rel="nofollow" target="_blank">

[/img] ?ound rises b?ck a?ove $1.28 as weaker-than-expected U? jobs...
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