NEWS TICKER: In a market note this morning, Royal London Asset Management’s fixed income team say that while investors got their heads round the launch of an Argentinian bond maturing next century (despite the country last defaulting just three years ago) borrowing long looks set to continue. Both the US and UK have been mooting the idea of issuing ultra-long government debt, with hints emerging that the UK’s Debt Management Office could print a new 60-year bond, perhaps in September. Meanwhile, US Treasury Secretary Steve Mnuchin has come out and said that any decisions to print ultra-long bonds would not be a one-off occurrence. The asset management team also notes that Bank of England chief economist Andy Haldane contradicted Mark Carney and spooked gilt markets a little on Wednesday when he suggested that he could see a case for paring back the additional stimulus provided last August. The two- year gilt yield is now trading around its highest level all year this morning, but the longer-term picture remains, with the yield available on short term debt still well below pre-referendum levels. In our view, any expectations of a rate hike seem premature, given the effects of continued political uncertainty on business confidence and subdued wage growth. Both in the UK and overseas, government bond markets have been singing from the same hymn sheet, with the yield available on short dated debt rising, while longer dated bond yields remain roughly unchanged. Meanwhile comments of a rather dovish tone from the ECB have continued support for periphery European issuers such as Spain and Portugal. Craig Inches, head of short rates and cash at Royal London Asset Management, says, “With global bond yields still low, and demand still high, it’s perhaps understandable that governments of all stripes are looking to lock in very long-term borrowing. However, the worry of what happens when yields begin to finally rise is likely to prey on investors’ minds, particularly for those investing in more esoteric, emerging market government debt. By contrast, present weakness in short duration bonds could provide an opportunity should rumours of a rate hike fail to materialise.” -- Commenting on the anniversary of Brexit this morning, Graham Bishop, investment director at Heartwood Investment Management said: “Sterling’s devaluation in response to the shock UK referendum result has been the most significant market event in recent years. It has yet to materially recover from its post-referendum low and now remains vulnerable to even more political and economic uncertainty. However, this year’s general election result seems, at least, to have mollified some of the UK government’s hard Brexit rhetoric, which has shifted to being more pragmatic and conciliatory. Uncertain domestic politics, economic cloudiness and more ambiguities around Bank of England policy lead us to maintain an underweight allocation to UK assets.” – Michael van Dulken and Henry Croft at Accendo Markets commented to clients this morning that a negative opening call for European equities comes a after a mixed stateside session, and slim gains in in Asia overnight. Investors may be sceptical of the latest oil price bounce, having been here several times lately but continually failing to overcome a downtrend channel amid global oversupply. Senate threats to Trump’s latest Healthcare Bill also add to political uncertainty and sap faith in the new US President getting his stimulus election pledges through Congress. However, the status quo benefits the Healthcare sector and Banks may welcome overnight US Fed stress test results. Japan’s Nikkei is just positive, they say, hindered by a flat yen, a drop in PMI Manufacturing and lower oil prices hurting Energy. Australia’s ASX is outperforming (only just) as banks are hurt by a new tax proposals and a mixed show from Energy/Miners after the oil price decline --