A good time to buy bonds?

masonic

nb2508 said:

Am I right in thinking that an etf like £GLTL with a yield of 3.9%, will continue paying dividend into my ISA until maturity? If the yield goes down to say 3%, I am quids in?

It will be paying an interest distribution rather than a dividend, although the distinction isn't relevant within an ISA.

An ETF won't mature. It will keep buying new bonds to replace those maturing.

Yield and price are negatively correlated, so a reduction in yield will tend to lead to an increase in value.

JohnWinder

Reaper said:

I can't think of a worse time to invest.

.. but of course trying to time the market is a mugs game.

Mmmm. Are you suggesting we be mugs, or not?

Reaper

Audaxer said:

I'm not now sure it is a good time to buy bonds, especially UK gilts, if the BoE are going to withdraw their current support this Friday 14 Oct., and if we still have to wait till 31 Oct. for the Chancellor's statement.  

We can expect plenty of volatility as it's not clear what the government and BoE are really going to do. My feeling is the market is somewhat on hold until the Chancellor's statement, but I am not expecting him to find any rabbits to pull out of hats leaving the market disappointed.