Gilts

Gilt yields bounced from last week’s record lows as investors switched out of safe-haven assets into equities amid signs of bargain-hunting and as yields from high-quality blue-chip stocks looked better than those from bonds. The yield on the June 2010 gilt, which fell to below 1 per cent for the first time last week, rose six points to 1.06 per cent.

Rumour of the day

InterContinental Hotels (IHG) rose a further 18p to 615½p after Guoco, the Malaysian investor that owns Thistle Hotels, revealed last Friday that it had brought its holding above the 3 per cent declarable level. The word is that the purchase is not a forerunner to a bid and is merely an opportunistic acquisition, since Guoco believes that IHG’s shares are cheap.

Deal of the day

Graham Titcombe, a non-executive director of Talvivaara Mining, bought 20,000 shares in the Finnish zinc and nickel miner at 116.3p. The shares rebounded 12¼p to 141p. They have fallen from a 440p peak as the imminent start of nickel production coincided with falling metals prices, leading to higher borrowings and a cut in production targets.

Bet of the day

Debenhams, the department store group, rose 3p to 28½p after strong sales figures from John Lewis, its rival. Analysts believe that John Lewis is better placed than the indebted Debenhams, which is expected to announce a decline in sales in its trading update today, despite heavy promotional activity. WorldSpreads offers a 28.7-29.1 March spread.

Tiddler to watch

Clean Air Power (CAP) rose 1¾p to 14½p after the developer of a technology to purify diesel in heavy-duty engines signed a keenly awaited letter of intent with Volvo to incorporate its technology into lorry engines. Canaccord Adams said that the deal represented a potentially transformational opportunity for CAP.

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