Gilts

Gilt prices fell, but a well-received 30-year auction and expectations of a hefty interest rate cut today helped them to outperform bunds. Ten-year gilt yields rose three basis points to 3.28 per cent. Britain is issuing a record £146 billion in gilts this fiscal year, equivalent to about 10 per cent of annual GDP. The March gilt future fell 33p to £120.94.

Rumour of the day

Mecom, the European newspaper group run by David Montgomery, rose 0.15p to 1.26p amid talk that it is about to sell its German papers to M DuMont Schauberg, a German rival, for €165 million (£148 million). It would help Mecom to persuade banks to roll over some of its £600 million debt, on which covenants are due to be tested next month.

Deal of the day

InterContinental Hotels Group fell 18p to 604p after Guoco, of Malaysia, said that it had taken a profit on some of its stake. It sold 145,000 shares on Monday at about 615p, which indicates that the stake, which was taken above the 3 per cent declarable level a week ago when the price was 563p, was an opportunistic bet rather than a precursor to a bid.

Bet of the day

The price of platinum has been rebounding steadily from three-year lows as the latest series of mine closures are expected to restrict supply. Washington’s aid for the American car industry has also helped sentiment. The price of platinum was 2.45 per cent higher at $990.30, while WorldSpreads’ April spread is $987.80-$992.80.

Tiddler to watch

Leni Oil & Gas has had a good run of late amid successful results on the Eugene Island A-8 well in the Gulf of Mexico. The debt-free group, firm at 2.62p, also has producing assets in Spain and Hungary, with net production of 700 barrels a day, less than 12 months since it bought its first asset. It is now seeking others.

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