Currency vigilantes punishing sterling - M&G

M&G says currency vigilantes have taken the place of traditional bond vigilantes in enforcing market discipline. The pound fell sharply against the dollar and euro yesterday, with sterling now at a six month low against the European single currency. M&G highlights the pound is now the worst performing currency in 2010, having fallen 2.5% against the dollar. Gilt prices continue to soar however, with the five-year gilt hitting an all time record low yield of 1.44% yesterday morning. The five-year gilt now yields 0.2% lower than the equivalent bund. "This is staggering if you conside...