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Realistbear

Bond Markets In Europe Fall Pointing To Much Higher I R

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http://uk.biz.yahoo.com/12072006/214/bonds-round.html

Wednesday July 12, 04:05 PM

Bonds round-up

LONDON (ShareCast) -
European bonds fell on continuing fears that interest rates may be hiked by the ECB at a faster rate than originally thought.
Yields on the 2-year UK gilt rose to 4.75% while the yield on the 10-year gilt rose by nearly 3 basis points to 4.66%. The 10-year German bund rose 3 basis points to 4.09%
Similar concerns about future rate hikes are also pushing down US treasuries. There is speculation that the healthy state of the US economy could mean that rates could be raised again.
Yield on the 10-year note is 2 basis points higher at 5.12%.

There is no way Gordon can stand pat on current IR. The Bond markets will do the job for him and he will be forced to get into line and hike along with the ECB, Fed and BoJ. Or, face a sterling crisis.

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http://uk.biz.yahoo.com/12072006/214/bonds-round.html

Wednesday July 12, 04:05 PM

Bonds round-up

LONDON (ShareCast) -
European bonds fell on continuing fears that interest rates may be hiked by the ECB at a faster rate than originally thought.
Yields on the 2-year UK gilt rose to 4.75% while the yield on the 10-year gilt rose by nearly 3 basis points to 4.66%. The 10-year German bund rose 3 basis points to 4.09%
Similar concerns about future rate hikes are also pushing down US treasuries. There is speculation that the healthy state of the US economy could mean that rates could be raised again.
Yield on the 10-year note is 2 basis points higher at 5.12%.

There is no way Gordon can stand pat on current IR. The Bond markets will do the job for him and he will be forced to get into line and hike along with the ECB, Fed and BoJ. Or, face a sterling crisis.

Maybe he would prefer a sterling crisis to a house price crash which would help exports and manufacturing jobs. This would import inflation but then he could fudge the figures and move the target. I agree he should raise rates along with everyone else but his eye is on no.10 not whats in the best interests of the economy long term.

From his position the following may look attractive:

Keep rates constant as long as possible to keep house prices stable, move into no.10 before it all goes pear shaped, keep reputation intact and let someone else sort out the mess !!!

He just cant have the economy goes pear shaped during a leadership election so the economy and house prices may just decline slowly until after Tony Blair leaves after which it could all get more fun !!!

Edited by DONT PANIC !!! DONT PANIC !!!

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  • 302 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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