Pattullo: Look beyond a largely irrelevant election

Gilts have rallied significantly into the Election, more driven by the UK by being associated with the core of Europe than the chance of a significant Tory majority.

We may be in considered in better shape than the periphery, but we have adjusted via weak sterling. Regarding governments, most investors would prefer a majority to push the required austerity package through - a majority government implies a mandate from the people to carry out their election pledges. It seems counter intuitive to suggest a hung parliament is positive in the UK. A hung parliament seems a current focus issue. I am much more concerned about the excessive gilt supply and hugely sceptical of the ability of any western government to run the necessary fiscal surpluses for ...