DOOM: UK

[AtW]

“UK borrowing costs surge to 15-year high

The returns that the Government must offer investors to hold UK debt has risen to a 15-year high as markets predict interest rates will rise to 6.5pc within months.

The yield on 10-year UK gilts - considered the benchmark for borrowing costs - has climbed 15 basis points to 4.64pc to reach its highest level since the global financial crisis in 2008.

The yield is effectively the cost of Government borrowing over a set period. The yield on shorter two-year and five-year bonds have also reached 15-year peaks after rising to 5.47pc and 4.9pc.respectively.

The increase in the 10-year yield - which is less susceptible to swings in interest rate expectations - marks the first time the coupons have surpassed the levels set during the bond market crisis following Liz Truss’ ill-fated mini-Budget.”

https://www.telegraph.co.uk/busines...-markets-live-news-banks-mortgages-inflation/

So we could have had lower rates and lower taxes, instead Tory Scum delivers the opposite

 

[JustKeepSwimming]

“UK borrowing costs surge to 15-year high

The returns that the Government must offer investors to hold UK debt has risen to a 15-year high as markets predict interest rates will rise to 6.5pc within months.

The yield on 10-year UK gilts - considered the benchmark for borrowing costs - has climbed 15 basis points to 4.64pc to reach its highest level since the global financial crisis in 2008.

The yield is effectively the cost of Government borrowing over a set period. The yield on shorter two-year and five-year bonds have also reached 15-year peaks after rising to 5.47pc and 4.9pc.respectively.

The increase in the 10-year yield - which is less susceptible to swings in interest rate expectations - marks the first time the coupons have surpassed the levels set during the bond market crisis following Liz Truss’ ill-fated mini-Budget.”

https://www.telegraph.co.uk/busines...-markets-live-news-banks-mortgages-inflation/

So we could have had lower rates and lower taxes, instead Tory Scum delivers the opposite

Inflated linked? It does imply that markets believe inflation isn't going anywhere soon.

 

[AtW]

Inflated linked? It does imply that markets believe inflation isn't going anywhere soon.

Just like you Gricer...

 

[Fraidycat]

FTSE 250 got smashed today, down almost 500 points.

JP Morgan also said they expect BOE rates to hit 7%

If so then mortgage rates will hit 8%+, £40,000 a year interest on a 500K mortgage

 

[JustKeepSwimming]

FTSE 250 got smashed today, down almost 500 points.

JP Morgan also said they expect BOE rates to hit 7%

If so then mortgage rates will hit 8%+, £40,000 a year interest on a 500K mortgage

Assuming £280k average house price. 80% mortgage. £224k mortgage.

£224k @ 3% = £1062

£1062 @ 8.5% = £132k

£132k + £56k = £188k

So 33% fall in prices? That's assuming £1062 is still viable for people.

 

[AtW]

And Sterling isn’t dropping like a stone

 

[AtW]

“Investors are now betting the BOE will have to lift its key rate to above 6.5% to cool inflation, which is the highest in the G-7.

The sudden loss of faith has renewed talk that UK is “turning itself into a submerging market,” as former US Treasury Secretary Larry Summers put it during the crisis last year. The UK is the “stagflationary sick man of Europe,” said Bank of America chief investment strategist Michael Hartnett. Cole warned that “betting on an unexpected decline in inflation in the near-term would seem like the triumph of hope over experience.””

https://www.bloomberg.com/news/arti...nd-growth-outlook-darkens?srnd=premium-europe

 

[AtW]

“Sunak wants lower taxes and strong public services but insists tax cuts will come only when the UK can afford them. With higher rates adding around £20 billion a year to the debt, the Treasury has little if any scope for giveaways.

In the meantime, Sunak is building an entirely different economy to the one he talks about. At least 4 million more Britons have been dragged into income tax since 2020. Corporation tax is up from 19% to 25%. The overall UK tax burden is the highest it has been since the end of the Second World War.”

 

[AtW]

“Hunt rules out big UK tax cuts and admits inflation goal ‘challenging’

https://www.ft.com/content/57af465d-bf51-464b-9592-92d8de16bb92

FOAD then