Realistbear Posted March 13, 2006 Share Posted March 13, 2006 (edited) http://uk.biz.yahoo.com/060313/94/g6c3r.html Monday March 13, 04:11 PM Strong UK data depress gilt prices Gilt prices fell on Monday as hopes of a near-term interest rate cut in the UK diminished following two sets of strong data. Producer prices data showed that input prices were flat last month but manufacturers still managed to raise their output prices, leaving the annual inflation rate at 2.9 per cent. Paul Dales, UK economist at Capital Economics, said that the data suggested that price pressures at the start of the inflation pipeline remained reasonably strong . 10-year gilt was yielding 4.372 per cent, up 2bp. Whether Gordon likes it or not, the pressure on IR will build forcing the B o E into line. It is TTRTRates again. http://www.iii.co.uk/news/?type=afxnews&ar...&action=article LONDON (AFX) - European government bonds remained weak, still pressured by the prospect of higher interest rates in both the euro zone and the US, as well as the beginning of monetary tightening in Japan. Bonds have continued to trend lower in the wake of Friday's stronger-than-expected US jobs data which raised talk that US interest rates could go beyond 5.00 pct. "The bond market is still digesting the strength in the non-farm payrolls numbers and the more hawkish commentary from central bankers," said CIBC analyst Audrey Childe-Freeman. This afternoon, European Central Bank president Jean-Claude Trichet said tighter monetary policy in the euro zone, the US and Japan would not pose any threat to global growth. Over in the UK meanwhile, gilts were also lower, tracking their European counterparts, and after firmer-than-expected UK producer prices and house price data gave further reason for the Bank of England not to cut interest rates . Edited March 13, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 13, 2006 Author Share Posted March 13, 2006 RB with all due respect... Must you turn every little story into a new thread? You're fragmenting this forum into hundreds of related (discontinued) threads with single-digit responses and hence, no continuity, in case you hadn't noticed. Must you remain the centre of attention at the expense of any real in-depth analysis or discussion on these boards? Why do you even insist on duplicating other peoples' threads into the bargain? I know you're only doing your job, but you're terminating a lot of decent threads before their time, which is to the detriment of this site IMHO... Wasn't sure which ones are being duplicated--can you give an example--it would help. Thanks, RB Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted March 13, 2006 Share Posted March 13, 2006 Wasn't sure which ones are being duplicated--can you give an example--it would help. Thanks, RB how about an interest rate thread Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 13, 2006 Author Share Posted March 13, 2006 how about an interest rate thread IR are the hot topic of the day--a good idea. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 13, 2006 Author Share Posted March 13, 2006 Wrong. This is the story of the day... Yup, I agree--good thing there is no inflation in the UK economy. Weren't the last two HPCs caused, in large part, by fuel price increases? Quote Link to comment Share on other sites More sharing options...
smiley Posted March 14, 2006 Share Posted March 14, 2006 Apparently (I hear from a genuinely reliable source...) pay inflation in the civil service works out at 6.5%! Not the sort of figure Gordon Brown would want made public, but when you factor in people's jobs being upgraded etc, 6.5% is the figure you get! Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 14, 2006 Author Share Posted March 14, 2006 Here's a nice piece in he Guardian... Rising gilt yields could signal global turning point Excellent article. Of particular noteworthiness: It may be too early to say definitively that Mr Greenspan's "conundrum" has been solved, but the move upwards in world bond yields is significant and could mark a step change upwards in the world cost of capital . More confirmation that the economic cycle is turning and the days of cheap credit and lax lending standards are coming to an end. Exhuberant HPI in the UK is 100% dependent on both. Patience is a virtue. Quote Link to comment Share on other sites More sharing options...
Smurf1976 Posted March 14, 2006 Share Posted March 14, 2006 So now the UK long term rates look headed up? Joining with the US then... Spot the trend? Quote Link to comment Share on other sites More sharing options...
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