1/16/2008: Gilts have surged in line with Bunds/Treasuries, and the Mar Gilt could continue onward from 111.50 to 112.00, with support at around 111.00. June S-stg should stick around the 95.00 mark, with risks on the upside, but limited by its already discounting three BoE rate cuts. Back-month contracts have greater potential to outperform, as the UK central bank will respond as necessary to adverse economic shocks. And the RICS survey of property agents, showing the worst outlook since 1992, shows that the housing market will be one such shock.