NewsMV
Ten-year UK gilts are the preferred sovereign bond position over U.S. Treasurys and the broader international fixed-income field, according to TS Lombard.
The call is notable because it arrives as Britain sits in a period of significant political turbulence, the kind of backdrop markets traditionally use to mark down a country's government paper.
The recommendation TS Lombard's preference runs across the sovereign bond field: gilts over U.S. Treasurys, gilts over international alternatives.
For rates desks running cross-market sovereign books, that framing carries direct implications for how to position duration and manage sterling exposure against dollar-denominated paper.
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