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Sisyphus

U.k. Bonds Decline As Speculation Of Interest-rate Cut Recedes

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from Bloomberg terminal - so i can't post link:

Jan. 26 (Bloomberg) -- U.K. 10-year government bonds fell

for a third day on speculation the Bank of England will leave

borrowing costs unchanged for the rest of the year.

US durable goods orders were stronger than expected too - prompting expectations +0.5% -to +0.75% rate rises in the pipeline.

Treasuries Fall, Head for Longest Slump Since November, as Orders Increase

The next UK rate move will be up not down.

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Oh, I would soooo laugh if all this "instability" snowballs and we see the end of long term rates quckly.

If interest rates went up above 5% and things got nasty, I hate to say it, but I don't think I would be able to stop laughing for a week or so.

Schaudenfreude.

There would be a few cheap X5's on the market then as well as houses.

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Your quote says U.K. I was confirming you meant U.S.

sorry I wasn't clear - first part does refer to UK bonds

Jan. 26 (Bloomberg) -- U.K. 10-year government bonds fell

for a third day on speculation the Bank of England will leave

borrowing costs unchanged for the rest of the year.

Minutes of the central bank's Jan. 11-12 meeting released

yesterday showed Stephen Nickell voted for an interest-rate cut

for the second month, while his eight fellow policy makers voted

to keep rates on hold. A report yesterday showed growth in the

economy accelerated more than expected.

``The window is beginning to close in terms of rate cut

hopes,'' said Oliver Mangan, chief bond economist at AIB Capital

Markets in Dublin. ``Yields should back up with the diminishing

prospects of a rate cut in the U.K.''

The yield on the benchmark 10-year gilt rose 7 basis points,

or 0.07 percentage point, to 4.17 percent by 4:30 p.m. in London.

Bond yields move inversely to prices.

The price of the 4.75 percent gilt due September 2015 fell

0.56, or 5.6 pounds per 1,000 pound ($1,762) face amount, to

104.53. Prices move inversely to yields...

...

Futures trading shows investors pared bets the central bank

will cut rates this year. The yield on the three-month Libor

futures contract due in June 2006 was at 4.59 percent today, from

4.48 percent a week earlier.

The contract settles to the three-month London interbank

offered rate for the pound, which has averaged about 15 basis

points more than the central bank's target for the past decade.

The MPC has no justification in lowering rates, soon they'll have no choice but to raise them.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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