Swap Rates Anyone?

[Harry Sacks]

http://www.swap-rates.com/UKLibor_extended.html

[kagiso]

http://www.swap-rates.com/UKLibor_extended.html

well somebody doesn't seem to be taking the CPI figures too seriously...............

[Fancypants]

by jingo!

[equitystasher]

I understand that the uk extended swap (fixed) rates dictates the price of fixed rate mortgages but could you help me out and explain how we are affected by the LIBOR rates short term rates?

Am I correct in saying that this is the rate at which banks will lend to each other? And if it is how will this affect the man on the street?

[Harry Sacks]

I understand that the uk extended swap (fixed) rates dictates the price of fixed rate mortgages but could you help me out and explain how we are affected by the LIBOR rates short term rates?

Am I correct in saying that this is the rate at which banks will lend to each other? And if it is how will this affect the man on the street?

What it means is that if you enter a swap with a bank for the next twelve months, and you want to hedge against rates rising, the bank won't pay the difference until rates exceed 6.5% (approx)

So what it really means is the banks expect IR to go higher than 6%. So if you went into a swap now you would have to pay the difference between the current base rate and the current swap rate.

[needle]

well somebody doesn't seem to be taking the CPI figures too seriously...............

Yes theres one person called Every Boddie - but he's a very influential chap, thats probably what causing it.

[equitystasher]

What it means is that if you enter a swap with a bank for the next twelve months, and you want to hedge against rates rising, the bank won't pay the difference until rates exceed 6.5% (approx)

So what it really means is the banks expect IR to go higher than 6%. So if you went into a swap now you would have to pay the difference between the current base rate and the current swap rate.

I see so this view by the markets in response to credit tightening rather then the possibility B of E raising rates?

[dude wheres my house]

Can someone relay the numbers i cant view the page properly

[Fancypants]

CBs are bluffing, in reality the only thing they care about is preventing a USD meltdown.

indeed, if that is true, then one wouldn't expect them to be dropping rates anytime soon.

[Harry Sacks]

Yes theres one person called Every Boddie - but he's a very influential chap, thats probably what causing it.

It's one month's figures. The £ is falling against the $ and yen. If this continues........

The £ climbed six cents during July, there is your deflation.

[Harry Sacks]

I see so this view by the markets in response to credit tightening rather then the possibility B of E raising rates?

I can't answer that. Anyone?

[neil324]

I see this coming through the market and credit tightening rather than BOE raising the rates, any AGREE with this im about to plough a big chunk of money into a 1 year fixed savings bond which will get 0.9% gross more interest than where its sitting.

So even with 2 rate rises im still ahead and god forbid if they cut rates im covered there also.

Any views gladly taken.

[Property Owning Democracy]

what maturityis this? i thought swap rates went right out to30 yr +