> It is not outputting in XML, but in HTML,

hey you missed out the important bit!

The spec says


     The html output method should not escape < characters occurring in
     attribute values.

It doesn't say anything about > so both saxon and xt are right.
On the other hand you might argue that < is singled out here as the
XML output method _does_ have to escape <, so perhaps the implication is
that it shouldn't escape either, but that isn't what it says.

David


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