UK gilts: going nowhere
Article Abstract:
UK government securities (gilts) are unlikely to perform well in the short term from Jan 1995. UK interest rates will be raised in 1995 since growth of gross domestic product is only likely to show a small fall for 1995. Rising US rates could bring rises in UK rates and will thus affect the market for gilts. US unemployment figures show a sharp drop to below the rate seen as needed to dampen inflation, and this means that US interest rates will be raised.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Lost momentum
Article Abstract:
The performance of UK government securities (gilts) has been affected by forecasts for inflation, and import costs are rising, causing inflation to continue to rise in Jun 1995. The market for gilts is not likely to be calmed unless the UK government puts up interest rates. Gilts have a yield which is 2% above the yield for US Teasury bonds. The UK government plans an auction of gilts on Jun 28 1995. This auction could result in further pressure on gilts.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Biting the bullet
Article Abstract:
UK interest rates rose in Feb 1995, a move which concerns industry and could depress the housing market. The rise is seen by many analysts as timely, and should slow growth of gross domestic product from some 4% to 2.5%. The rise has prompted a favorable reaction from the market for government bonds (gilts). Political uncertainty could still affect the gilts market, especially if the UK government suffers loss of support from the Ulster Unionists.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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