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UK At 80% Risk Of Rating Downgrade On Current Debt Plan:PIMCO

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Comments

  • purch
    purch Posts: 9,865 Forumite
    It's called a Yield Curve
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • abaxas
    abaxas Posts: 4,141 Forumite
    purch wrote: »
    It's called a Yield Curve

    So people are expecting 2.5% rates nex year?
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    chucky wrote: »
    from your article
    except for the expert armchair ecnomists on MSE who predicted a Gilts strike


    that's not what they saying on MSE!!!!


    They are purchasing gilts using assets bought Using QE. Is ther any surprise they arent struggling to sell them?

    The boe BOUGHT more gilts than it sold last year you clown!
  • Mr.Brown_4
    Mr.Brown_4 Posts: 1,109 Forumite
    mbga9pgf wrote: »
    The boe BOUGHT more gilts than it sold last year you clown!
    It's the curse of Google intelligence again I fear. Fortunately I am on hand to advise Chucky if required.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 6 January 2010 at 6:29PM
    mbga9pgf wrote: »
    They are purchasing gilts using assets bought Using QE. Is ther any surprise they arent struggling to sell them?

    The boe BOUGHT more gilts than it sold last year you clown!
    Mr.Brown wrote: »
    It's the curse of Google intelligence again I fear. Fortunately I am on hand to advise Chucky if required.
    i get two muppets for the price of one

    how do you get 2.68 coverage on just one issue then - is that all the BOE?
  • Mr.Brown_4
    Mr.Brown_4 Posts: 1,109 Forumite
    chucky wrote: »
    two muppets for the price of one

    how do you get 2.68 coverage on just one issue then - is that all the BOE?
    Not again. OK then, one last time. If you take the Yield Curve aspect ration, and genuflect the associated underlying rapidity of the data set, then it is possible to draw a diverging parallel between the points. Once you have this as your base line then it is self evident why the figure of 2.68 exists, it is an entity in itself which reminds me in a strange way of the paradox that we first witnessed during the Sterling crisis.

    Apologies if I am failing to get this through to you, but I guess working in the City this stuff is second nature to me, and it is difficult to satisfy the young one's thirst for knowledge. We don't normally take passengers, if you know what I mean.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Mr.Brown wrote: »
    Not again. OK then, one last time. If you take the Yield Curve aspect ration, and genuflect the associated underlying rapidity of the data set, then it is possible to draw a diverging parallel between the points. Once you have this as your base line then it is self evident why the figure of 2.68 exists, it is an entity in itself which reminds me in a strange way of the paradox that we first witnessed during the Sterling crisis.

    Apologies if I am failing to get this through to you, but I guess working in the City this stuff is second nature to me, and it is difficult to satisfy the young one's thirst for knowledge. We don't normally take passengers, if you know what I mean.
    stick to the humour and the funnies mewbie - you're not the brightest :)
  • purch
    purch Posts: 9,865 Forumite
    So people are expecting 2.5% rates nex year?

    Only Forumonicists :rolleyes:

    Is that not the 10 year Yield shown in your pretty graph ?
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Mr_Mumble
    Mr_Mumble Posts: 1,758 Forumite
    Bulls are getting desperate if they're using an auction of short gilts in the middle of QE and with enforced bank purchases as a sign the great Gordo can continue on his spending spree. Even the Labour majority Treasury Committee admits UK may not be able to sell enough gilts:

    “…there remains the risk that the combination of the large amount of gilt auctions planned in 2010-11 and the cessation of Quantitative Easing will result in an excessive supply of UK gilts onto the market at a time when other governments will be offering similar products, with the possible result that auctions are uncovered and yields increase.”
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    edited 6 January 2010 at 6:43PM
    chucky wrote: »
    i get two muppets for the price of one

    how do you get 2.68 coverage on just one issue then - is that all the BOE?

    The Bank doesnt directly buy gilts. The deal is as follows. BOE Purchase Assets from the banks (RBS,Barclays capital etc) in return for cash. Those assets are held on the BOE balance sheet. The Independent banks thus go out and purchase Gilts from the market. The banks are also injecting quite a lot of cash into the FTSE at the moment it would seem.

    It would not surprise me if this has been requested by the BOE after recent rumblings of a write down. If UK creditor confidence collapses, its going to be bad for the UK banks on asset insurance schemes. I would to see the input from non-uk banks into the gilts market.... shame those figures aint public isnt it chucky?

    Either way, until QE ends, we wont have a true picture of the economy.

    Now who is the muppet?
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