Gilts

Gilts rose as a dearth of data and the closure of American markets for Independence Day made for thin trade. The September gilt future was 45 ticks higher at 105.61, having shot up more than 70 ticks on Thursday after the European Central Bank eased market worries over rate rises. The ten-year gilt yield fell back below 5 per cent.

Rumour of the day

Rio Tinto rose 140p to £56 amid talk from Australia that the BHP Billiton board was meeting to discuss raising its bid to 3.6 BHP shares for every Rio share plus $12 cash – a 15 per cent improvement. Sceptics argue that there would be little reason to increase the bid, given that an offer will not be tabled until after a lengthy competition investigation.

Deal of the day

Richard Conroy, founding chairman of Conroy Diamonds & Gold, bought £47,000 worth of shares in the Irish gold miner, bringing his stake to about 28 per cent. The shares lost 0.125p to 4.375p. On Monday, it upgraded fivefold its estimate of gold reserves at its Clontibret licence in Co Monaghan, the largest find in Britain and Ireland.

Bet of the day

Will Persimmon, up 7p at 236p, spread further gloom on the housebuilding market with its trading statement on Tuesday? It was worth 800p at the start of the year, but the fall has not been as disastrous as those of its debt-laden rivals Taylor Wimpey and Barratt Developments. Cantor Index offers a September contract based spread of 228.1-229.3p.

Tiddler to watch

Irvine Energy, which is exploring for oil and gas in Kansas and Oklahoma, was off 0.075p at 3.175p after a drilling update. Production at one site was interrupted by technical problems, but two other wells in Kansas are due to begin selling oil in August, the first oil reserves in the state. Housebroker Evolution has an 11p target.

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