… the gilt is down one point today (to 116 on the June futures, still 4 points above its level in Feb) …. NOT because or solely because of hung parliament negotiations ‘dragging on’ but because there is a huge relief rally in equities, a return to risky assets, etc. The FTSE is up 2-3% and the pound stronger against the dollar (weaker against the Euro, but then it is they who’ve been bailed out by all this money).
Popular and well meaning conspiracy theorists like to think the markets just wag to the dog of politics. No, the FTSE is full of international companies. Simple rule of thumb: things are never as simple as Marxists think they are.