Variable Ratio Analysis: Cable & UK Gilts vs. US Treasuries

Fundamental breakdown
Changes in Foreign Exchange rates can influence market sentiment and affects US Treasury risk as compared with the UK Gilts in this case; which has seen wider spreads in this current market conditions.

In understanding the risk characteristics of an investor in the GBPUSD currency related market, we need to know the risk factors in relation to the variation in the economic conditions of the financial markets.  Identified here is the variable difference where the European sector has been adapting a favorable stance versus the recent decline in the US Dollar market. Thus the US treasury is at risk from a declining US value contrary to its European counter part.

Cable & UK Gilts vs. US Treasuries