In the know: ECB bunds; Panmure Gordon; Carphone Warehouse

Gilts

Gilts plunged by more than half a point in line with bunds after the European Central Bank kept interest rates on hold at 1 per cent and gave no indication that it planned any further cuts. The September gilt futures settled 60 ticks down at 116.38, reversing most of the full-point gain booked in the previous session.

Rumour of the day

Office2office rose 13¾p to 122¼p after Panmure Gordon sparked talk that the office services business, granted its current low valuation, may start to attract attention from overseas players in the office supplies market looking for a UK foothold, especially given the robust trading that the broker believes remains in place. Panmure has raised its price target to 174p.

Deal of the day

Carphone