DOOM: UK 2-year bond yields at Truss panic levels

[AtW]

“Expectations that UK interest rates will keep rising are driving up the British government’s short-term borrowing costs ABOVE levels seen in Liz Truss’s brief premiership.

That’s bad news for people who looking to take out a mortgage, or remortage, soon.

The yield, or interest rate, on UK two-year government bonds has hit 4.73% this morning, up from 4.62% last night, after this morning’s jobs report showed regular pay growing at the fastest rate on record.

That is slightly higher than the peak seen in the turmoil after last autumn’s mini-budget, when chancellor Kwasi Kwarteng’s plan for unfunded tax cuts spooked the markets.
”

https://www.theguardian.com/business...0862658b7a4758

Wo under Sunak we get same tulip minus lower taxes that Truss pushed for

[TestMangler]

“Expectations that UK interest rates will keep rising are driving up the British government’s short-term borrowing costs ABOVE levels seen in Liz Truss’s brief premiership.

That’s bad news for people who looking to take out a mortgage, or remortage, soon.

The yield, or interest rate, on UK two-year government bonds has hit 4.73% this morning, up from 4.62% last night, after this morning’s jobs report showed regular pay growing at the fastest rate on record.

That is slightly higher than the peak seen in the turmoil after last autumn’s mini-budget, when chancellor Kwasi Kwarteng’s plan for unfunded tax cuts spooked the markets.
”

https://www.theguardian.com/business...0862658b7a4758

Wo under Sunak we get same tulip minus lower taxes that Truss pushed for

yeah, but labour......

[dsc]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

[jamesbrown]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

Interest rates to the moon!

[Fraidycat]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

If only that were true about the IT jobs market and rates. High interest rates are destroying demand for new IT projects. Companies paying more debt interest have less money to waste on expensive IT projects.

Also the FTSE 250 is still in a bear market, down over 20% from all time highs. Im looking for a breakout above 21,000 as a signal the worst might be behind us. Probably not going to happen anytime soon if they keep on raising rates.

[dsc]

If only that were true about the IT jobs market and rates. High interest rates are destroying demand for new IT projects. Companies paying more debt interest have less money to waste on expensive IT projects.

Also the FTSE 250 is still in a bear market, down over 20% from all time highs. Im looking for a breakout above 21,000 as a signal the worst might be behind us. Probably not going to happen anytime soon if they keep on raising rates.

Not just IT, any investment will suffer, which is why I'm surprised the job market is doing well. Pensioners picking up perm jobs to survive? or is it just summer jobs pushing the numbers up?

[dsc]

Interest rates to the moon!

I'm waiting for Labour to win and then hand out loads of cash to people and see how it all falls apart. Tories must be relieved in a way as they won't have to clean up this spiral mess.

[SueEllen]

I'm waiting for Labour to win and then hand out loads of cash to people and see how it all falls apart. Tories must be relieved in a way as they won't have to clean up this spiral mess.

Labour will do what Bliar did when he won - not change anything for their first term to stop the markets crashing. I mean they saw what Truss could do within 50 days.

[AtW]

Corp tax is up from 19% to 25% = less money for investment, higher interest rates = businesses must increase profitability to pay more dividends (and dividend taxes up also), otherwise why risk capital when some banks already pay 3%+?

Thank you pro-business low-tax Tory Scum party

[tazdevil]

Corp tax is paid on profits and business investment reduces profit so level of CTax not an issue there. Also a good businessman aims for a zero profit scenario which proves they've maximised use of income. In any case you should be salting £60K for each Director into executive pensions to minimise profit