REUTERS– Neil Collins is a Reuters columnist. The views expressed are his own –

This rather odd chart from Monument Securities says something curious — http://graphics.thomsonreuters.com/commentary/INDEX-LINKED-CURVES.pdf. — It shows that British investors (or at least the buyers of UK Government index-linked gilts) are much keener to buy protection against inflation than the holders of French and U.S. government bonds.

A yield curve plots the return on bonds against their longevity, and this one shows that in all three countries, the short-dated index-linkers promise to be pretty dull investments.

Since inflation is currently negative (on some measures) and it takes a while to get going, this is hardly surprising.

The obvious divergence is in the area of the chart covering stocks that have between 12 and 20 years to run. There is a reasonable supply around these dates, so liquidity is not an issue. All the U.S. dollar index-linked TIPS and all the French euro index-linkers yield between 2.1 and 2.2 percent, in each case protected against the relevant national inflation rate.