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Bond Markets React To Certainty Of I R Hikes Coming

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LONDON (AFX) - European government bonds were lower, continuing yesterday's declines ahead of an expected quarter point interest rate hike by the European Central Bank next week.
Bonds fell yesterday after the key Ifo survey on the German business climate reached a 14-year high and came in well above expectations, while better-than-expected US jobless claims kept the negative tone going throughout the afternoon.
Today's events are "unlikely to interrupt this bearish tone", analysts at CALYON said.

The "Bearish tone" signals the chnage in direction of the economic cycle. What happens to house prices when IR start to rise? Bearing in mind that IR are the highest in history when looking at the price to earnings ratios (people have borrowed much more making repayments higher regardless of lower rates).

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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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