Reply to: Interest rates

[jamesbrown]

The question is how can Truss bin Kwasi without also going herself...

She can't. Impossible. ( And apologies for the off-topic posts. )

[jamesbrown]

Hence why they're not available on the high street.
There are risks.

And the market fears the UK's ability to repay them. That's why they're offering such a high yield right now.
Although the BoE now buying them back is an interesting development.
Kwasi is toast I hear.

Did you hear that from Rachel Reeves?

There's literally no chance that Kwasi is toast in the near-term because he's perfectly aligned with Truss, and there's literally no chance that the Tories will ditch Truss in the near term. I mean, the Tories may be fooked, but changing the party rules to allow a confidence vote within the first 12 months of a new leader and then to have one and install another leader would make the broader Tory party explode in a fireball that would be visible from space.

When Tory MPs say "I'm writing a letter" or brief nonsense like the above, you need to read them as "I am very, very angry". Which they are, but hey ho, that's it.

[NowPermOutsideUK]

There are also ETFs that package up gilts - From memory IGLT is the ishares UK sterling denominated ticker

I needed instant access so cant trade ETFs - Risk of course is rates go up a lot more and then the IGLT will move down

[eek]

Hence why they're not available on the high street.
There are risks.

And the market fears the UK's ability to repay them. That's why they're offering such a high yield right now.
Although the BoE now buying them back is an interesting development.
Kwasi is toast I hear.

The question is how can Truss bin Kwasi without also going herself...

[Lance]

Just bear in mind that the rate on a bond moves inversely to the price. In other words, you can get back (a lot) less money than you paid, rate aside. It isn't a risk-free alternative to a savings account . I expect most people know this, but some might not.

Hence why they're not available on the high street.
There are risks.

And the market fears the UK's ability to repay them. That's why they're offering such a high yield right now.
Although the BoE now buying them back is an interesting development.
Kwasi is toast I hear.

[jamesbrown]

Just bear in mind that the rate on a bond moves inversely to the price. In other words, you can get back (a lot) less money than you paid, rate aside. It isn't a risk-free alternative to a savings account . I expect most people know this, but some might not.

[Lance]

What's an easy way to buy them?

Buying & Selling (dmo.gov.uk)

Interactive Investor offer them as well.

[ChimpMaster]

2 year government gilts were going for 4.8% yesterday.
30 year at 5%

What's an easy way to buy them?

[Lance]

Thank you - I went with a Marcus 1.8% instant savings account - Better than halifax current account

2 year government gilts were going for 4.8% yesterday.
30 year at 5%

[NowPermOutsideUK]

Thank you - I went with a Marcus 1.8% instant savings account - Better than halifax current account

[DealorNoDeal]

Which lender is this with and are there penalties for with-drawl ?

Family Building Society. No withdrawals permitted during the 2 years.

https://www.familybuildingsociety.co...-rate-bond-(11)

[ChimpMaster]

If you have a bit of cash in bank and want some interest, 2 year govt bonds give you 4.7% interest right now. You have to hold it for 2 years to guarantee that yield (but if you want it back earlier you may lose or make money, that depends on the market price at the time).

That also gives some indication of where base rates and mortgage rates are headed.

This isn't good for anyone here in the UK.

[jamesbrown]

with-drawl ?

Say what, now?

[NowPermOutsideUK]

In the end, I went for a 2-year tracker, bank base + 0.85% (paying 3.1% from 1st Oct).

Should work out ok this year and next. Perhaps not so well in 2024 but we'll see.

Which lender is this with and are there penalties for with-drawl ?

[DealorNoDeal]

In the end, I went for a 2-year tracker, bank base + 0.85% (paying 3.1% from 1st Oct).

Should work out ok this year and next. Perhaps not so well in 2024 but we'll see.