BOE Bailout Stabilizing Bonds But Raising Questions
BOE Bailout Stabilizing Bonds But Raising Questions
Abstract
The Bank of England announced emergency bond buying (read: inflationary) But at least it pushes back firmly on the supply/demand panic in the British bond market. If it was a more ideal solution, bonds would be back at last Wednesday's levels as opposed to "still significantly weaker. But perhaps the bigger question is whether the action by the BOE serves a symbolic role to draw a line in the sand, or rather, to hang a. to hung a ceiling over the recent high yields. The action is to hang in the air, or instead, to hanging a ceiling.
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Bond biggest recent issues were caused by a fiscal announcement in the UK that would drastically increase debt and decrease revenue (read: inflationary).ย Despite the deceptive bounce in MBS yesterday, markets remained in a tailspin as of just a few hours ago until the Bank of England announced emergency bond buying (read: inflationary, but at least it pushes back firmly on the supply/demand panic in the British bond market.ย If it was a more ideal solution, bonds would be back at last Wednesd...
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Between now and then, there is a Tr...
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Between now and then, there is a Tr...
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Mixed Day For Bonds, But Same Opportunities (And Risks) Remain
The day began fairly well for the bond market with modest gains overnight and limited drama for most of the domestic session.ย After the 3pm close (also month/quarter-end in this case) buyers clocked out early and MBS lost more than an eighth of a point.ย Relative to the levels seen earlier in the week, this keeps hope alive that bonds are attempting to level-off in the bigger picture.ย Th...
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The 2.91% technical level in 10yr yields held firm as a ceiling overnight and domestic traders began pushing a lower-yield agenda in the 7am hour.ย At 8:30am ET, both of this morning's economic reports suggested the economy isn't in nearly as much trouble as seemed to be the case in late July.ย Yieldsย reacted by moving back up toward (but not above) the upper technical levels.ย This is a reasonably resilient way to start the day.ย Holding below 2.91% would suggest bonds are more interested ...
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Bonds Lost Ground, But It Was Still Sort of a Victory As the day began, bonds flirted with the idea of breaking into positive territory.ย We'd hoped to see them merely hold steady--especially after the weaker consumer sentiment data, but it was not meant to be.ย After a brief rally on the sentiment data, bond buyers were done for the day.ย Yields followed stocks and oil higher (correlation not necessarily causality) into the afternoon.ย On the bright side, yields remained under the 3.13% tec...
Demand for secured lending for house purchases lifted in the first quarter of the year and is expected to jump over the next three months, according to a Bank of England report. Banks and building societies reported a net balance of 6 when asked how demand had changed, swinging from -34.8 in the final quarter ...
This story continues at Mortgage demand lifts despite spike in living costs: BoE
Or just read more coverage at Mortgage Finance Gazette
Demand for secured lending for house purchases lifted in the first quarter of the year and is expected to jump over the next three months, according to a Bank of England report. Banks and building societies reported a net balance of 6 when asked how demand had changed, swinging from -34.8 in the final quarter ...
This story continues at Mortgage demand lifts despite spike in living costs: BoE
Or just read more coverage at Mortgage Finance Gazette