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Bond Traders Are Preparing for a 5% Yield, No Rate Cut World - Bloomberg


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HOLA441
55 minutes ago, cdd said:

U.S inflation stuck at 3-4% range, despite "high" rates.

Risk of wars escalating and much higher prices. Too bad you never factor these possibilities into your theories, Stewy.

Worst thing they could do is cut. That would mean they have to then go harder after assuming inflation proves sticky. 

That is what happened 40 years ago. They went hard on inflation. Then thought they won and cut. And then they had to go even harder the second time. History might repeat itself.

They won't do cuts unless it is clear inflation is going though. 

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HOLA442
18 hours ago, Stewy said:

 

 

Check in which country you and I live. 

Oh dear, somebody is deeply clueless about how interconnected economies are.

We can't lower interest rates unless other major economies do because it would cause the pound to tank.

Our imports are priced in dollars, so if the pound tanks, it would create inflation. Hence why what is happening in America matters.

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HOLA443
19 hours ago, Stewy said:

They've stopped the HPI and created The Plateau which is where we'll sit...until something changes...

It’s not a plateau it’s a stalemate, something will be forced to give, it is in a terrible state and will take a long time to fully play out.

Personally I suspect it will start to snowball properly when panic sets in. At the moment those on the edge keep being given crumbs of hope. If the promised land is an illusion then sit back and watch.

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HOLA445
22 minutes ago, frederico said:

I think we can be reasonably confident a cut will not happen this year, (@stewy mode, I really have no clue.)

Originally I thought interest rates would be cut to 5% and held for the rest of 2024.  Then I thought perhaps they might get cut further to 4.5%.  Now I think I’m back on my original prediction that rates will not fall below 5% this year.

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HOLA446
56 minutes ago, bartelbe said:

Oh dear, somebody is deeply clueless about how interconnected economies are.

We can't lower interest rates unless other major economies do because it would cause the pound to tank.

Our imports are priced in dollars, so if the pound tanks, it would create inflation. Hence why what is happening in America matters.

GBP:USD 1.24.

That’ll feed into import prices and thus inflation.

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HOLA447
18 hours ago, Will! said:

GBP:USD 1.24.

That’ll feed into import prices and thus inflation.

That's the market knowledge that we're cutting rates first. Inflation has been quelled. 

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