Markets View Uk Gilts As Less Than Aaa

[davidhpc]

"Since the end of November, the gap between the interest rate Britain and Germany must pay on 10-year government debt has risen from 0.35 percentage points to 0.9 points."

"And the UK’s yields are also only a fraction lower than those of Portugal, seen as the weakest eurozone economy after Greece."

FT Link

Looks like the markets aren't going to wait for an official downgrade.....

[Cicero]

"Since the end of November, the gap between the interest rate Britain and Germany must pay on 10-year government debt has risen from 0.35 percentage points to 0.9 points."

"And the UK’s yields are also only a fraction lower than those of Portugal, seen as the weakest eurozone economy after Greece."[/i]

FT Link

Looks like the markets aren't going to wait for an official downgrade.....

Crikey!

[Toilet-Currency]

Time and time again, lazy journalists fall into the trap of comparing yields across different currencies and drawing a straight conclusion about creditworthiness.

I'm not saying that the UK's fiscal health is particularly strong- far from it- but the article does not begin to consider whether the expected path of interest rates over the next 10 years might differ between the €-zone and sterling. Nor does it talk about the impact of the cessation/pause of QE.

Pretty basic stuff.

[tomwatkins]

Time and time again, lazy journalists fall into the trap of comparing yields across different currencies and drawing a straight conclusion about creditworthiness.

I'm not saying that the UK's fiscal health is particularly strong- far from it- but the article does not begin to consider whether the expected path of interest rates over the next 10 years might differ between the €-zone and sterling. Nor does it talk about the impact of the cessation/pause of QE.

Pretty basic stuff.

Makes for better headlines.