How to help your minister feel the bond market

Quick Summary:

With Bondzo so far away from his bananas, a fall in the bond yield to 3 per cent would push the bond price to 120 (green dashed line).🍾🍾🍾 And a rise in the yield to 5 per cent would push the price down to 80 (red dashed line).

While there are all sorts of downsides to rising yields, we’ve got to remember that bond market investors are making judgments about the temperature of the economy.

The 12mth rate rose around 90 basis points between the day before the mini-Budget and the day before the Bank of England intervened as the market moved to price in aggressive hikes to offset the boost that would be given by the new deficit-spend to inflation.Bank Rate was only 2.25% at the time.

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Article Details

Author / Journalist: Toby Nangle

Category: MarketsFinanceInvesting

Markets: United States

Topics: Bank Yields Bond Minister Price Cent Rates It’s Yield Rate Bonds

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-23 @ 04:00:31 (5 days ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 3866 words

Reading Time: 22 minutes read

Sentences: 15 lines

Sentence Length: 258 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23211033

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About Financial Times

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

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Year Established: 1888

Headquarters: United States

News Last Updated: 10 hours ago

Coverage Areas: United States

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