british gilts rise for third week yields hit low
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

British gilts rise for third week, yields hit low

Arab Today, arab today

Arab Today, arab today British gilts rise for third week, yields hit low

London - Arabstoday

Gilts rose for a third week, sending ten-year yields to record lows, as volatile markets boosted demand for safer assets and the Bank of England's inflation report indicated prices will moderate as the economy falters. The difference in yield between two- and ten-year government securities narrowed to 186 basis points, the least since March 2009, as investors added to bets that slowing growth and inflation will keep interest rates near zero. Stock markets fluctuated between gains and losses in the wake of Standard & Poor's downgrade of the US and concern that French banks were having trouble funding themselves. Possible decline "Despite ten-year gilt yields reaching a new low, we believe yields can move lower," said Anthony O'Brien, a fixed-income strategist at Morgan Stanley in London. "The inflation report suggests that the bank rate will remain low for a long period. Financial markets are going to continue to be very volatile over the next few weeks, and in that environment, safe AAA assets like gilts continue to be a good investment." Article continues below Yields on ten-year gilts declined 16 basis points in the week to 2.53 per cent on Friday, up from 2.459 per cent on August 11, the lowest since Bloomberg began collecting the data in January 1989. Yields on two-year notes rose ten basis points in the week to 0.65 per cent. Sterling fell 0.7 per cent against the dollar last week to $1.6280 (Dh5.9798). The pound declined 0.3 per cent versus the euro. Near-term growth in the UK is "likely to remain sluggish" and inflation should be "a little below target in the medium term," the central bank said on August 10. Governor Mervyn King said inflation may undershoot the central bank's 2 per cent target and the UK has "flexibility" to adjust policies if growth proves to be weaker than expected. ‘Quantitative easing' "The Bank of England has moved closer to engaging in a further round of quantitative easing," BNP Paribas said. "We have therefore changed our forecast and now expect that the Bank will engage in a further round of quantitative easing of up to £100 billion (Dh598 billion) of gilt purchases." The implied yield on short-sterling futures expiring in June 2013 has plunged 171 basis points, or 1.71 percentage points, this year as traders raised bets that benchmark rates will remain lower for longer. UK gilts have handed investors a 7.1 per cent return this year, compared with 6.4 per cent for US Treasuries.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

british gilts rise for third week yields hit low british gilts rise for third week yields hit low

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

british gilts rise for third week yields hit low british gilts rise for third week yields hit low

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday