UK Finances Fecked

[willendure]

https://www.tradingview.com/symbols/TVC-GB30Y/

UK 30 year gilt is now at a 28 year high and climbing rapidly.

[WTFH]

You mean there's a good return for people who invest in gilts. Might get some of the money that's currently in the US coming our way.

I thought you were all for investment and getting good returns, but this seems like you don't like making money.

[Protagoras]

I wonder whether this would be a good time to purchase additional Annuity ...

[willendure]

You mean there's a good return for people who invest in gilts. Might get some of the money that's currently in the US coming our way.

I thought you were all for investment and getting good returns, but this seems like you don't like making money.

Gonna buy now are you? As the interest rate goes up the price goes down, so if you think its got a lot further to go up, now is not the time to buy. Its going to cripple UK investment rates, already the lowest in the G7.

Hint: The pound fell 1.2% against the dollar today. Money is not coming in, its running away.

[Andy2022]

https://www.tradingview.com/symbols/TVC-GB30Y/

UK 30 year gilt is now at a 28 year high and climbing rapidly.

We're only issuing gilts with a 10yr timeline at the moment and there's still plenty of appetite for it so the 30yr timeline isn't that relevant

BoE probably need to stop they QT process and just hold the gilts until maturity and then cancel them as other central banks are doing

According to the FT there's a lot of UK buyers of gilts ATM which is kinda interesting and if you're young enough to enjoy the ride then the 2061 guilt looks interesting

[WTFH]

We're only issuing gilts with a 10yr timeline at the moment and there's still plenty of appetite for it so the 30yr timeline isn't that relevant

BoE probably need to stop they QT process and just hold the gilts until maturity and then cancel them as other central banks are doing

According to the FT there's a lot of UK buyers of gilts ATM which is kinda interesting and if you're young enough to enjoy the ride then the 2061 guilt looks interesting

It's interesting when you look at the 5 and 10 year ones how big an impact the Truss car crash had. How many years will the country be reeling from the affects of that?
Looking at 7 year or less, the yield is lower than it was back then.

[willendure]

It's interesting when you look at the 5 and 10 year ones how big an impact the Truss car crash had. How many years will the country be reeling from the affects of that?
Looking at 7 year or less, the yield is lower than it was back then.

The 10 year has been consistenly higher than the Truss blip since the start of this year. Trending uncomfortably closer to 5%, I would say.

What is the maximum the UK can sustatin given current debt levels? Over 5% will be bad, 6% major crisis. But I think we will be doing QE and yield curve control well before that comes to pass.

[WTFH]

... the Truss blip ...

Before Truss (Let's say 04/01/22) it was 1.3%
After Truss (December the same year): 3.7%

Going up 3x in a year is not a "blip".
Trashing the economy and the country is not a blip.
There was no attempt to fix it either by the Sunk administration.

[willendure]

Before Truss (Let's say 04/01/22) it was 1.3%
After Truss (December the same year): 3.7%

Going up 3x in a year is not a "blip".
Trashing the economy and the country is not a blip.
There was no attempt to fix it either by the Sunk administration.

She only became PM on 6th Sept 2022, and it was 3.1% already by then! So yeah, you can't pin the 3x on her...

[Andy2022]

Last week”s 10yr Gilt issue was ten time oversubscribed - they were selling £14bn and got orders for £140bn - so we don’t need to worry too much