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mpc: 11 A47 The main factors leading to this downward revision in future rate expectations included the weaker-than-expected RPI and PPI price data, and the first rise in unemployment in two years. Implied rate expectations had also fallen following declines in international equity indices, and after the release of the November MPC minutes, which were interpreted as placing more weight on the downside risks to economic activity. As implied rates fell, the skewness derived from options on short sterling futures contracts had returned to a neutral position, having implied a greater downside risk during October and early November. A48 Bond yields at all maturities had fallen over the month in all major markets. The 10-year gilt yield, for example, had fallen by more than 30 basis points. Spreads between sterling corporate bonds and gilts had widened slightly, but these changes were small relative to the large falls in yields within both markets. The downward movement in yields had been influenced primarily by considerations related to weakness and volatility in global equity markets and increased expectations of a slowdown in world growth. A49 The sterling ERI had been relatively stable over the month, but had ended the period 1.5% lower at 105.4. During the first half of the month, the dollar had appreciated against sterling, but later it had weakened significantly, and had ended the period 0.8% lower against sterling at 1.4365. Though varying reports of each candidate's ascendancy in the US Presidential election had had little immediate impact on the dollar exchange rate, political uncertainty as well as prospects for lower US GDP growth had affected market sentiment. In contrast the euro had risen by 2.4% against sterling to 0.6160. The value of global cross-border M&A deals had continued to slow in November to its lowest level since September 1999, which suggested that one source of downward pressure on the euro might have begun to ease.