Anyone buying gilts right now?

Altior

cloud_dog said:

Altior said:

When Truss wiggled her magic fingers and caused the chaos a couple of years ago 

So without getting into politics

That is quality to be fair

I'll accept the critique of my chosen language, but in that example there was an action and a corresponding re-action, which us plebs could at least assimilate the what and why.

I'd argue that the plebs were gaslit into assuming the what and the why in late 2022. Pretty much every stakeholder had an interest in that budget being seen as a failure, and a cause of higher interest rates. Even people nominally in the same team. Now I'm guessing most plebs think their mortgage rates up cos of truss. 

Even now it's known as the truss budget, but the last budget is the reeves budget. 

Of course it's now impossible to have a proper debate on this here, else my posts will be quietly wiped away by the invisible man! 

Hoenir

Altior said:

cloud_dog said:

Altior said:

When Truss wiggled her magic fingers and caused the chaos a couple of years ago 

So without getting into politics

That is quality to be fair

I'll accept the critique of my chosen language, but in that example there was an action and a corresponding re-action, which us plebs could at least assimilate the what and why.

I'd argue that the plebs were gaslit into assuming the what and the why in late 2022. Pretty much every stakeholder had an interest in that budget being seen as a failure, and a cause of higher interest rates. Even people nominally in the same team. Now I'm guessing most plebs think their mortgage rates up cos of truss. 

Even now it's known as the truss budget, but the last budget is the reeves budget. 

Of course it's now impossible to have a proper debate on this here, else my posts will be quietly wiped away by the invisible man! 

Instead of addressing issues head on and having an adult discussion. There's now an endless blame culture.  Unfortunately the financial press is pretty devoid of people that understand the past enough to give context to where we are today. 

cloud_dog

Altior said:

cloud_dog said:

Altior said:

When Truss wiggled her magic fingers and caused the chaos a couple of years ago 

So without getting into politics

That is quality to be fair

I'll accept the critique of my chosen language, but in that example there was an action and a corresponding re-action, which us plebs could at least assimilate the what and why.

I'd argue that the plebs were gaslit into assuming the what and the why in late 2022. Pretty much every stakeholder had an interest in that budget being seen as a failure, and a cause of higher interest rates. Even people nominally in the same team. Now I'm guessing most plebs think their mortgage rates up cos of truss. 

Even now it's known as the truss budget, but the last budget is the reeves budget. 

Of course it's now impossible to have a proper debate on this here, else my posts will be quietly wiped away by the invisible man! 

Yes, it appears we can't even acknowledge that there was an action, with a re-action, and when a follow up action was taken a lot of the re-action was negated. Very sad indeed.

Altior

cloud_dog said:

Altior said:

cloud_dog said:

Altior said:

When Truss wiggled her magic fingers and caused the chaos a couple of years ago 

So without getting into politics

That is quality to be fair

I'll accept the critique of my chosen language, but in that example there was an action and a corresponding re-action, which us plebs could at least assimilate the what and why.

I'd argue that the plebs were gaslit into assuming the what and the why in late 2022. Pretty much every stakeholder had an interest in that budget being seen as a failure, and a cause of higher interest rates. Even people nominally in the same team. Now I'm guessing most plebs think their mortgage rates up cos of truss. 

Even now it's known as the truss budget, but the last budget is the reeves budget. 

Of course it's now impossible to have a proper debate on this here, else my posts will be quietly wiped away by the invisible man! 

Yes, it appears we can't even acknowledge that there was an action, with a re-action, and when a follow up action was taken a lot of the re-action was negated. Very sad indeed.

That 'action' did not take place in a vacuum. In actual fact, the action that many stakeholders got their knickers in a twist over never actually happened at all. But all of the underlying factors that caused the price of government borrowing to go up have stayed in place, hence the graph that I posted earlier (before the most recent 'fiscal event'). 

Hoenir

Altior said:

cloud_dog said:

Altior said:

cloud_dog said:

Altior said:

When Truss wiggled her magic fingers and caused the chaos a couple of years ago 

So without getting into politics

That is quality to be fair

I'll accept the critique of my chosen language, but in that example there was an action and a corresponding re-action, which us plebs could at least assimilate the what and why.

I'd argue that the plebs were gaslit into assuming the what and the why in late 2022. Pretty much every stakeholder had an interest in that budget being seen as a failure, and a cause of higher interest rates. Even people nominally in the same team. Now I'm guessing most plebs think their mortgage rates up cos of truss. 

Even now it's known as the truss budget, but the last budget is the reeves budget. 

Of course it's now impossible to have a proper debate on this here, else my posts will be quietly wiped away by the invisible man! 

Yes, it appears we can't even acknowledge that there was an action, with a re-action, and when a follow up action was taken a lot of the re-action was negated. Very sad indeed.

That 'action' did not take place in a vacuum. In actual fact, the action that many stakeholders got their knickers in a twist over never actually happened at all. But all of the underlying factors that caused the price of government borrowing to go up have stayed in place, hence the graph that I posted earlier (before the most recent 'fiscal event'). 

Events here are very now following those across the pond. As it's difficult to envisage the yields on US Treasury stock to drop in the short term. Yellen having funded Biden's spending spree with a high level of 2 year issuance. Average maturity length of US Treasuries is now just 70 months. There's a train load of refinancing heading down the tracks,

Bobziz

Hoenir said:

Yes also. Have been for a while. Progressively been switching from short dated to longer dated. 

In simple terms. We are witnessing the unwinding of the QE era. Central Banks are well underway with running down their balance sheets. Interest rates are normalising. No more cheap money to propel asset prices skywards. 

Balanced portfolio's to dampen volatility would appear to be destined to be in vogue again. 

PS. 1998 is an interesting date. Around the time that Northern Rock and Bradford and Bingley commenced the US concept of securitising mortgage debt to grow their mortgage lending capacity. Always going to be a phase 2 post GFC. 

@Hoenir is dampening volatility with the hope of a decent capital gain at some point prior to maturity the reason why you're shifting to longer dated or do you intend to hold to maturity regardless?

Hoenir

Bobziz said:

Hoenir said:

Yes also. Have been for a while. Progressively been switching from short dated to longer dated. 

In simple terms. We are witnessing the unwinding of the QE era. Central Banks are well underway with running down their balance sheets. Interest rates are normalising. No more cheap money to propel asset prices skywards. 

Balanced portfolio's to dampen volatility would appear to be destined to be in vogue again. 

PS. 1998 is an interesting date. Around the time that Northern Rock and Bradford and Bingley commenced the US concept of securitising mortgage debt to grow their mortgage lending capacity. Always going to be a phase 2 post GFC. 

@Hoenir is dampening volatility with the hope of a decent capital gain at some point prior to maturity the reason why you're shifting to longer dated or do you intend to hold to maturity regardless?

Purely a personal decision. As investors our time horizon progressively diminishes. Far more to life than just making money. Also once you retire from the world of paid employment then the ability to recover from poor investment decisions becomes increasingly challenging. 

Aminatidi

I never have fully got the "sweet spot" along the yield curve so whilst I appreciate I'm asking a very broad question, if you currently had a significant sum in 100% equities but weren't convinced by multi-asset fund or a bond tracker or MMF or cash but wanted to try to dial down volatility a little where about on the maturity dates would you be looking right now please?

masonic

Aminatidi said:

I never have fully got the "sweet spot" along the yield curve so whilst I appreciate I'm asking a very broad question, if you currently had a significant sum in 100% equities but weren't convinced by multi-asset fund or a bond tracker or MMF or cash but wanted to try to dial down volatility a little where about on the maturity dates would you be looking right now please?

I'm not sure I understand your question. If you want to buy individual gilt(s), then there is obviously a balance between YTM and effective duration. Depending on your objectives, you may see duration as something to be embraced or avoided. Long duration would give you the potential for a capital gain if interest rates fall back. Shorter duration may be preferred if you wish to hold to maturity for a known return and want to avoid locking in to a rate for too long. It's easier if you have a specific timeframe when the proceeds would be needed.

Hoenir

Aminatidi said:

I never have fully got the "sweet spot" along the yield curve so whilst I appreciate I'm asking a very broad question, if you currently had a significant sum in 100% equities but weren't convinced by multi-asset fund or a bond tracker or MMF or cash but wanted to try to dial down volatility a little where about on the maturity dates would you be looking right now please?

Equities like bonds are a broad church. 100% of what you hold will determine volatility and risk exposure.