Most bond markets have upwards yield curves, but UK gilts, as has often been the case, go their own ...
Most bond markets have upwards yield curves, but UK gilts, as has often been the case, go their own way. The UK yield curve peaks at around three years before falling quite sharply as maturity increases The Bank of England cited world demand, consumption and the labour market when raising official short rates recently. However, the factor that has attracted the most attention is the housing market. Recalling the property boom of the late 1980s, the Bank was understandably concerned. This time, however, it has acted pre-emptively Interest rates can be a blunt policy weapon. The effect on o...
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