Odd uk bonds only 4% more then germany

gailey_2

Todays bond markets-sorry meant 0.04 %

germany at botton with 2.15%
uk 2.19%

Think germany risen.
plus they couldent sell bonds the other day.

Find it weird uk news not reporting much on eurozone crisis its all gone quiet and bumped by the leveson enquiry

found this

http://www.irishtimes.com/newspaper/breaking/2011/1124/breaking11.html

seems lots going on behind the scenes they still cant sort themselves out.

Troubles spreading and germany digging its heel in over ecb lender of last resort.

rumours of bond buyers on strike and trying to force germanys hand.

I predict france to be next problem as thats been climbing and they exposed to greece,italy and colapse of belgian bank.

MrRee_2

You mean 0.04%

And that's because the UK has turned the corner.

People on here may not see it - but the bond market does!

Masomnia

That must be the narrowest spread in a loooong time.

gailey_2

MrRee wrote: »

You mean 0.04%

And that's because the UK has turned the corner.

People on here may not see it - but the bond market does!

Sorry forgot to add my 0s:o

Portugals debts now hit junk status.-defecit smaller than ours.
france in danger losing triple a credit rating and lower defecit than uk.

I guess we must be doing something right not sure what as we have

low growth
high defecit
high unemployement 8.3%
over relaince on financial sector
high inflation+5%
retailers doing badly.

Things we done I guess maybe helping

we went through the pain and recapitilised our banks enough a few years ago.

we not as exposed to euro debts as others-especially sovereign debts

we not in euro so in charge of our own currency

low interest rates-lowest in g7
quantative easing helps the banks.

we have a concrete austerity plan to try and get rid of our defecit by 2015 dont think we will as growth slow but think will get rid of alot of things. we prepared to make decsive hard decisions which gives bond buyers more confidence.

Think bonds very speculative its all about appearance not content and we doing a good bluff at being ok.

meanwhile labour still wants to spend more!

gagahouse

MrRee wrote: »

You mean 0.04%

And that's because the UK has turned the corner.

People on here may not see it - but the bond market does!

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:@ 'turned the corner'.

The BOE is a large part of the bond market currently.

The only thing some people on here may not see is that you're a baiting wind up merchant.

MrRee_2

All the evidence I see is of a booming economy ...... that's all I report.

Maybe it is currently slow where you are - but it's brisk business here.

Brian_Bullocks

MrRee wrote: »

All the evidence I see is of a booming economy ......

I'll drink to that...

purch

I don't think it's particularly Odd, considering the current Eurozone problems, the technical failure of yesterday's Bund auction and the QE program being undertaken by the Bank of England Bank.

It's quite odd to me that Bunds are still so expensive in light of the problems in Europe.

BTW there is an earlier thread on this subject on the board.

StevieJ

gailey wrote: »

Sorry forgot to add my 0s:o

Portugals debts now hit junk status.-defecit smaller than ours.
france in danger losing triple a credit rating and lower defecit than uk.

I guess we must be doing something right not sure what as we have

There are a number of reasons the main one being the time structure of our debt, large amounts don't need to be renewed for 14 years which takes pressure off current bond issues, here is the Peston take on it.

So what are the UK's structural advantages?
One of them, as Stephanie Flanders has pointed out, may be that the UK has a political system that is more adept at making tough decisions in a crisis and then implementing them - and some would argue that's been proved to be true even when our first-past-the-post system delivers a coalition government.

Then there are three other conspicuous and relevant differences between the UK on the one hand and Spain or Italy on the other.
First is that the UK has a central bank that has proved itself willing and able to buy vast amounts of the British government's debt - and as you know the European Central Bank has been shouting very loudly that it would be both illegal and wrong for it to do the same.
Of course, the Bank of England would argue that its commitment to buy £275bn of UK government bonds through its quantitative easing programme is not a bailout of the British government's finances but an attempt to stimulate economic activity by exerting downward pressure on longer-term interest rates (via the gilts price) and by injecting money into the banking system.
But a rather helpful spin-off benefit for the chancellor of the exchequer is that the Bank of England is a conspicuously big buyer of UK debt.
Second, the UK has a currency that adjusts to the competitive strength or weakness of the UK economy alone, whereas - arguably - the exporting businesses of Spain and Italy are forced to sell overseas at higher prices than they would ideally like because the euro's value is determined by the perceived robustness of Germany's formidable manufacturing capacity.
Finally there is a relatively prudent way in which the UK's debt has been managed by the semi-autonomous Debt Management Office - whose performance looks more and more important and impressive.
Next year it expects to have to borrow £162bn or 192bn euros to keep the UK afloat, of which just £53bn or 62bn euros represents borrowing to repay existing debts that are falling due for repayment.
By historical standards for the UK, that is a lot of money.
But compare it with Italy - which next year has to borrow 307bn just to repay maturing debt. On top of that, Italy will have to borrow even more to finance the gap (however small this turns out to be) between its revenues and outlays.
And although both Spain and France have smaller deficits than the UK, they will have to borrow comparable amounts to the UK in total - more than Britain in the case of France (according to Bloomberg data) - because so much of Spain's and France's debt is short-term, and needs repaying next year.
It's the number "13.99" which tells you the UK isn't bust and probably won't go bust. That's the average maturity of British government debt, the number of years that we as taxpayers have to pay off what we owe our creditors.
Those 13.99 years should surely be long enough to reconstruct our economy to generate growth in a balanced and sustainable way, to prove that we can pay our way in the world.
So here's the funny thing. If you are one of those who rails against the short-termism and excessive risk-taking of some banks and finance businesses, you might note that a public sector financial institution, the Debt Management Office, has taken a reassuringly long-term approach to managing the UK government's debts - and without its prudence, we might all be in Queer Street or Skid Row by now.

http://www.bbc.co.uk/news/business-15717770

gailey_2

Yes saw the thread about yesterdays news about germanys failure to sell all its bonds.

But todays news is probably linked to that news

apparently at one point this morning uk was paying less that germany that so rarly happens.

merkel meeting sarzozy/monti in strasbourg today.

I think germany thourght they would be unaffected, safe bet and safe haven.

But the bond market now disagrees.

just seems mad as uks in a huge mess.

yet we inspire confidence in some people.

Hoopie1

MrRee wrote: »

You mean 0.04%

And that's because the UK has turned the corner.

People on here may not see it - but the bond market does!

Or because with the Germans seemingly looking to be the central bail out fund for the Eurozone the market has woken up to that and their borrowing costs are rising as a result?