Russ Mould of A J Bell remarks on the Bank of England slowing down its gilt sales. The 10-year gilt, currently 4.7%, is seen as the risk-free rate against which other bonds are rated, the risks with them being inflation, interest rates, credit risk and liquidity. With equities, there's a mysterious turning point where institutions feel it's safer to be in gilts. After its rise, the UK market isn't as attractive as it was. The cash yield on the FTSE is a lttle north of 6%. 19 of its companies offer more than the risk-free rate. The old rule of thumb was that if it's double, as one company is, it's "too good to be true". Where do we go from here, though, with a moribund economy and the UK still adding to its debts?

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