David Fuller's view Fortunately, this was a small, 'testing the water' position but it obviously remains hazardous and JGBs (weekly, daily & yield weekly & historic) have strengthened prior to the imminent election. The trend looks overextended but I did not want the position to be rolled forward tomorrow. I closed this short position late last night when JGBs resumed trading. The Dec JGBs were bought in at 145.090 on the 5th, against my short at 143.816 on 7th Sep, including all dealing costs.

If the American and British economies are going Japan's route, as some expect but I do not, then those holding US Treasuries and UK Gilt longs will remain on a roll. However, if the US and UK economies recover in the next few years, then the very long bull market in US Bonds and UK Gilts will fall back sharply from its bubble peaks.