Is BoE the patient zero in the fight against bond vigilantes? More panic could be upcoming from other central banks soon as real rates are shooting for the stars
....and it shall be permanently higher interest rates. Don't fall for the "convenient" yield curve inversion that ( I presume the Fed itself is managing to massage ) has maintained it's kink in the yield curve posture even as the entire curve moves in parallel higher. The prior "world arrangement" is not coming back now.....as is said, wide is the path to ruin (there are easy mistakes even marriages can not recover from). permanently higher rates.
there are zero buyers for the long dated (>20yrs) gilts in the UK, besides BoE. A report by the United Kingdom Debt Management office, GILT MARKET, GILTS IN ISSUE ON 13 OCTOBER 2022, shows
the total to be ~GBP 464Bn of 20+year bonds outstanding. That is huuuuge.
They are playing coy to monty python levels ("only a flesh wound") on this issue.
....and it shall be permanently higher interest rates. Don't fall for the "convenient" yield curve inversion that ( I presume the Fed itself is managing to massage ) has maintained it's kink in the yield curve posture even as the entire curve moves in parallel higher. The prior "world arrangement" is not coming back now.....as is said, wide is the path to ruin (there are easy mistakes even marriages can not recover from). permanently higher rates.
there are zero buyers for the long dated (>20yrs) gilts in the UK, besides BoE. A report by the United Kingdom Debt Management office, GILT MARKET, GILTS IN ISSUE ON 13 OCTOBER 2022, shows
the total to be ~GBP 464Bn of 20+year bonds outstanding. That is huuuuge.
They are playing coy to monty python levels ("only a flesh wound") on this issue.
Good write up, very clear views
Brilliant!!!
Great update. Thanks!