Volatility has made a tentative return to stock markets after an unusual period of absence.

As it began, this week appeared to be on track for another sleepy August session.

“If there is no struggle, there is no progress.” - Frederick Douglass

This week the Bank of England (BoE) announced its decision to maintain the status quo, voting by 6-2 majority to hold rates at 0.25% - a shift from the last meeting when 3 members dissented in favour of a hike.

Market investors continuously look for patterns in asset behaviour. One significant relationship is the response of yields on UK Government Bonds (Gilts) to changes in their US counterparts (Treasuries).