Bond Outlook June 23 2010

Retrenchment is now all the rage. There is scarcely a European country which is not looking to instigate some form of austerity programme, even when one seems unnecessary or inappropriate, as may be the case in Germany. The coalition Government in the UK has now delivered its “budget from hell”, as it has been christened, with the usual hyperbole, by some of the press. In the UK, as elsewhere, it is the public sector which is the most under attack.