This might really surprise you- check out the GBP/USD this morning

There is usually very little focus here on the really long term bond yields, but given some of the recent moves it is probably long overdue. Now, if you were to look at 30 year Greek yields and see that they were currently at 3.93% that probably would not surprise you. However, if you then looked across at the UK equivalent and see those right now at 5.24% you might ask the following question: how on earth are UK yields so much higher than Greece for goodness sake? Well, the answer is simple- the UK is right now issuing a lot of longer term paper in order to fund the extra borrowing unleashed by the UK Chancellor last October. So, in order to attract that flow those UK yields are where they are right now. Is that supporting the Pound you ask? Well, no it is not and partly because in the short term such ultra-long term yields do not matter to the FX market more often than not. There will be more to add on this but that said, as reported here yesterday in a few updates, the GBP/USD got caught out by a dollar rebound. That  rebound prevented a push above its 21 day moving average, then at 1.2574. The GBP/USD closed in the US last night at 1.2477. The range today- 1.2473-1.2494. The Pound is currently trading at 1.2483