Gilts

Figures showing that inflation fell to 4.5 per cent in October, lower than expected, pushed the yield on two-year gilts briefly below 2 per cent for the first time since records began 30 years ago as expectations of record low interest rates were stoked. The long gilt future rose 28p to £114.90. Two-year yields dropped to 2.07 per cent.

Rumour of the day

Infonic rose ¼p to 1.875p after winning a contract to supply is document management software to DHL to help it to handle NHS hospital and health authority trust documents. Another contract for its information software side with Lukoil, the Russian oil group, is said to be close. It would allow Lukoil engineers in the field to handle data.

Deal of the day

Barratt Developments rose 3¼p to 67¾p following its announcement that cashflows were improving after it had cut prices and Robert Lawson, the chairman, bought 151,841 shares at 65.3p. Despite giving warning of a big writedown, Mark Clare, the chief executive, said he was confident that the group would remain within renegotiated bank covenants.

Bet of the day

Citigroup’s 52,000 job cuts announced on Monday bring the total casualties for the year at the American bank to 75,000. Citi, which published record losses of $20 billion (£13.3 billion) this year, is seeking to cut costs by as much as 20 per cent. Paddypowertrader.com is quoting the Citigroup rolling daily bet at $8.53 to $8.59.

Tiddler to watch

Medicsight, which develops computer-aided medical detection software, rose ¾p to 29½p after it filed for approval to market ColonCAD, which uses software to screen for colorectal cancer, in the United States. It hopes for approval early next year. Edison Investment Research said that revenues should build up next year.

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