UK Bond Yields

UK bond yields at the 2yr. bond are yielding less than U.S. short-term bonds. The ability of the UK Central Bank to maintain bond yields where they are and policy rates higher than the 3-mo gilt will disappear with the onset of QE in that country and further recession, and the loss of control over the gold price.

What declining short term yields mean in terms of the finance business, is that no matter how much cash on hand you have, yields below 0.5% or negative nominal rates means a parabolic progression of losses(or a regression of Net Present Value) behind inflation.

The UK is where the Swiss and German central bank were several months ago.

http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/