The Pound is a screaming BUY

Generali

setmefree2 wrote: »

Turned out to be a good day after all 'cos investors even bought our gilts:D

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5biz9fABQjQ

"Two- and five-year gilts rallied after the U.K. successfully sold all 5 billion-pounds ($1.6 billion) of government bonds at an auction today even after the nation’s credit-rating outlook was cut by Standard & Poor’s. The Treasury sold the 2014 notes to yield 2.91 percent, attracting bids 2.6 times the amount offered, the Debt Management Office said today."

Selling five year debt at below 3% ain't bad in the circumstances.

setmefree2

Generali wrote: »

Selling five year debt at below 3% ain't bad in the circumstances.

That's abit cheerful for you....or where you being sarcastic?:p

sabretoothtigger

Five year is short dated I guess, its the 30 year which ran into trouble in the past I think

I really dont understand why people would buy 2.91 for five years though, seems a crap rate to me even if its safe. Index linked yea that makes sense, is it at such a premium


People buy gilts when stock markets look less safe I guess Its the same as me selling a stock and putting it in savings I guess

Generali

setmefree2 wrote: »

That's abit cheerful for you....or where you being sarcastic?:p

Not at all. I call it as I see it. I can see why you say that though!

Contrary to what I guess most regulars on here would imagine I am a very positive and optimistic person. Unfortunately, I also know a fair bit about economics and that teaches me that what has been going on over the past few years risks some dramatic and unfortunate results and I have been a siren for them.

inspector_monkfish

bly me, looks like cable almost touched 1.59 last night
slightly lower at 1.5840 at the moment

UK Q1 GDP 2nd release due at 9.30am
that could shake things up....