Gilts

Gilt prices fell again as the Bank of England revised up its inflation forecasts and suggested that there was little scope for rate cuts this year. The Bank cut interest rates to 5 per cent last month, the third cut since December. The June long gilt future fell 83 ticks to 107.35, pushing up yields on ten-year benchmark gilts by 12 basis points to 4.83 per cent.

Rumour of the day

Debts.co.uk, flat at 38p, the hard-pressed arranger of individual bankruptices known as IVAs, is thought to be close to an acquisition of a privately owned rival and the strengthening of its board with a new non-executive. Debt advice profits have been squeezed by a new deal with banks that cuts the fees that IVA arrangers can demand.

Deal of the day

WH Smith fell 8p to 417p after revealing that Kate Swann, its chief executive, had sold £1million shares, nearly half her holding, at 435.9p each. Other executives, including Simon Marinker, stores director, have been cashing-in options in recent days and selling ordinary shares. Analysts had been upgrading after strong results last month.

Bet of the day

Barclays fell 10p to 427p ahead of its first-quarter trading update today. Will it follow Royal Bank of Scotland, HBOS and Bradford & Bingley with a rights issue or will it have another writedown? BetBrokersBinaries.com is offering odds of 2-1 that the Barclays share price is trading below 410p in five market days.

Tiddler to watch

TGE Marine, a German ship designer that has built every refrigerated gas carrier made in China, comes to AIM tomorrow in a share placing by Kaupthing, the broker, at £130.00, valuing the company at £158 million. TGE, bought out of Suez Lyonnaise two years ago, should ride the boom in liquefied natural gas.

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