Gilts

Gilt prices rose as the rush to safe-haven assets returned after a profit warning from Bradford & Bingley and another big slump in mortgage approvals in April. The June long gilt future rose 16 ticks to 106.13, while the yield on ten-year gilts fell three basis points to 4.95 per cent, below a seven-month high reached last week.

Rumour of the day

Caledon Resources, which is trying to increase coal production from its Cook Mine in Queensland, Australia, rose 11¼p to 121¾p amid high volume. It could be a bid target if production reaches commercially viable levels. Polo Resources has built a 12 per cent stake and was rumoured to be picking up two million more shares in the market.

Deal of the day

Sir John Ritblat, chairman of Colliers CRE, the commercial estate agency that he founded, bought 50,000 shares at 63½p, at which level the market price held. The former chairman of British Land said last month that the property investment market would remain depressed until next year at least, rather than recover this year as he had expected.

Bet of the day

Lloyds TSB, down 6¾p at 377¼p, was one of the least-affected by the bank sell-off yesterday – but it has exposure to the British housing market via its mortgage book. BetsForTraders.com reports that its clients have increased bets on the bank’s shares falling and it offers odds of 2-1 that the price will be less than 385p in five market days.

Tiddler to watch

GB Group, which writes data authentication software for online gaming, should benefit from a forecast by Ladbrokes, its client, of a £350 million betting spree on the Euro 2008 football championship. It rose ¾p to 34p after Friday’s strong results and after Bill Currie, a hedge fund manager, raised his 6.17 per cent stake to 7.22 per cent.

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