Gilts

Short-dated gilt yields fell to a record low after a benign inflation outlook from the Bank of England suggested interest rates could stay low for longer than anticipated. The two-year yield hit a low of 0.671 per cent, down ten basis points. Short sterling futures rallied as much as 14 ticks in contracts from September 2010 onwards.

Rumour of the day

Shares in Brady fell 1½p to 66p despite some suggestions in the Square Mile that the commodities trading software group was on the verge of winning a big contract with one of the major mining groups. The company is thought to have struck a deal for its Aquarius product with Xstrata Copper’s operations and services in Chile.

Deal of the day

Could shares in XP Power be about to go on something of an adventure? The stock rose 17p to 319½p after non-executive director David Hempleman-Adams, the British explorer who was the first man in history to reach the geographic and magnetic North and South Poles, bought 8,200 shares at 299p, taking his stake to 27,050 shares.

Bet of the day

Shares in BT Group rose 3p to 142p ahead of half-year results from the telecoms giant today. The FTSE 100 company is expected to announce more cost-cutting measures, but will its investors be as lucky as some of the group’s lottery-winning employees this week? IG Index currently offers a price on BT of 140.96p-141.34p

Tiddler to watch

Shares in Zetar gained 2½p to 207½p after the AIM-listed confectionery and snacks group gave an upbeat trading update, with sales up 6 per cent to £56.8 million in the six months to October 31. The company, which also reduced debt by more than expected, said it remains confident of delivering growth for the full year.

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