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House Price Crash Forum

Bond Sell Off


MrB

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HOLA441

I've been on holiday for a few days, and missed some action on the bond market.

Yields on long term UK bonds moving higher apace:

http://newsvote.bbc.co.uk/1/shared/fds/hi/...ilt/default.stm

European bonds drop: http://www.bloomberg.com/apps/news?pid=100...VUg&refer=rates

10 Year US treasury yield hits 5%, highest in 4 years. Here's a nice chart: http://finance.yahoo.com/q/bc?s=%5ETNX&t=1y

Here's some guff analysis: http://money.cnn.com/2006/04/05/markets/bo...ields/index.htm

Is this the start of something exciting?

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HOLA445

Did I miss something. Last time I heard anything from the ECB it was Trichet hinting rates would not be going up. I didn't really beleive him at the time?!

trichet is hinting rates in the EU will not rocket,doesn't mean they won't go up!!!

...the EU will do better by de-regulating....not much short term impact in IR's but a major clout to GDP......i think that's where the french labour laws come in......watch out for the " new,improved" version!!!

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  • 2 weeks later...
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HOLA446

And so the trend continues.....

http://newsvote.bbc.co.uk/1/shared/fds/hi/...ilt/default.stm

Yields on 5 to 10 Yr Treasuries up to 4.65%, now ahead of the best fixed rate mortgages....How long will lenders take the strain?

http://finance.yahoo.com/q?d=t&s=%5ETNX

US 10 yr note up 1.8% at the time of posting, 5.07 yield.

These were predictions from mrtgage advisors regarding interest rates over 2005/2006:

Interest rate predictions

John Mills, MD, Westpoint Mortgages (mortgage adviser): “It looks to me like it’s going to go down in September. I think the MPC will nudge it down another 0.25 per cent to keep things ticking over.”

Colin Dale, head of lending, Skipton Building Society: “Our view is one of stability. We don’t expect any more interest rate reductions until possibly the end of the year. December is always a popular month for a downward move.”

Murdo McHardy, senior manager for product development and marketing, Scottish Widows Bank: “Interest rates will remain stable, possibly with a 0.25 per cent move downwards before the end of the year.”

Ray Boulger, senior technical manager, John Charcol (mortgage adviser): “When the inflation report comes out in November it will be sufficiently obvious that the UK economy is not responding. If I had to name a month for the next 0.25 per cent cut I’d say November.”

Tanya Jackson, spokesperson, Yorkshire Building Society: “We expect a gradual drift downwards with occasional peaks and troughs. But over the coming year (2006) we should see a total rate fall of 0.75 per cent.”

http://whatmortgage.money.msn.co.uk/fixed-rate.htm

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