"Britain is a must to avoid this. The gilts rest on a bed of nitroglycerin. High debt with the potential to depreciate the currency carries a high risk for bond investors. "This was the warning that Bill Gross, then head of Pimco Total with a volume of 200 billion USD (157 billion GBP), issued ten years ago Return Fund and self-proclaimed" Bond Market King ".

HE could hardly have been more wrong. At that time, the yield for 10-year gilts was 3.7 percent. today it is almost an all-time low at less than 0.8pc. It was a spectacularly bad phone call that challenges you whether Mr. Gross has ever really understood how government bond markets work at all.

In times of subdued economic activity …