  A new model for short-range isoscalar currents in the deuteron and in the NN
system is developed; it is based on the generation of an intermediate dibaryon
which is the basic ingredient for the medium- and short-range NN interaction
which was proposed recently by the present authors.This new current model can
very well describe the experimental data for the three basic deuteron
observables of isoscalar magnetic type, viz. the magnetic moment, the circular
polarization of the photon in the $np\to d\gamma$ process at thermal neutron
energies and the structure function B up to Q$^2$=60 fm$^{-2}$.
