Gilt-Edged Market

I don't like you, but I love you,

Seems that I'm always thinking of you

Oh oh oh you treat me badly,

I love you madly . . .

I don't want you, but I need you,

Don't want to kiss you, but I need to,

Oh oh oh you do me wrong now,

My love is strong now . . .

± William ``Smokey'' Robinson,

You Really Got A Hold On Me 1963

10 The Art of Government Bond

Trading

On a day back in early 1992, at the offices of a well known UK house, I sat on the gilt-trading

desk minding my own business, just consuming the remnants of a desk lunch (which

incidentally should put paid to the rumours concerning the four hour liquid lunches

enjoyed by all GEMM traders!). My quiet but otherwise perfect day was then rudely inter-

rupted by a colleague from the swaps desk introducing what ...