Sep

28

BOE, commods, and bonds

September 28, 2022 |

The IMF called the UK’s unfunded tax cuts excess in need of revision, while Moody’s warned about the UK. Mohamed El-Erian, chief economic adviser at Allianz SE, said the Bank of England now needs to raise interest rates by at least 100 basis points its next meeting on Nov. 3.

coordination or lone wolf?
UK Long Bonds Post Record Rally as BOE Moves to Stem Crash
• Yield on 30-year gilts fell 106 basis points to 3.93%
• BOE move follows disorderly selloff in recent sessions

The Bank had been warned by investment banks and fund managers in recent days that the collateral requirements could create a situation in which forced selling drove up the yield on UK debt. ie, money mite be lost by longs.

all concerned that the English wish to lower service rates:
Bank of England Buys U.K. Government Bonds, Intervening to Stabilize Market after Huge Selloff

cotton joins lumber and copper and every other market:
Cotton Prices Drop Amid Economic Worries, Strong Dollar Pressure
Futures shed one-fourth of their value in a month as slowing consumer demand overshadows potentially poor harvest

service cuts could create deficits: "US 10-year yields gained almost 80 basis points to head for largest monthly increase since 2003. The yield rose to 3.97% later in the day. global bond rout accelerated this as the UK’s plan for large tax cuts reinforced fears of more rate hikes."

us putting pressure on IMF to remove lowering of service rates:
US Encourages UK to Dial Back Tax-Cut Plan
• UK bond plunge has forced emergency Bank of England purchases
• Selloff in gilts, pound reverberated across world markets

Vic's twitter feed


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search