RouteMaster: Indeed. We have another type of chart that looks into the Yield Curve. Please note that as an indication of bond price movements we take the reciprocal of ten year government bonds yields. This will exaggerate the performance of an actual bond portfolio which may be spread across the time spectrum including shorter les volatile maturities, but it will show the direction.

Incidentally we hope you have already spotted that everything except the new explanatory variable is the same as in the last chart. This is part of our strategy to make complex analysis easily visualised by letting you see the same information in the same place as each new chart overlays the last one.

The chart currently suggests that consensus expectations are that the ratio will turn down from the top of a trading range built up over quarter of a century. This is bullish and to make it easier to understand, we have inverted the scale, so that higher means richer consistently in all our charts.

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