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...Last week the BoE kept rates at 5.25 per cent for a fifth consecutive meeting, as widely expected....
...Traders in swaps markets are now betting that the Bank of England will deliver only two quarter-point cuts to the interest rate by the end of this year from a current level of 5.25 per cent, down from an...
...Rob Wood, economist at the consultancy Pantheon Macroeconomics, predicted that the BoE would start cutting interest rates from their 16-year high of 5.25 per cent from June....
...Traders in swaps markets moved to fully price three 0.25 percentage point cuts in 2024....
...The UK will issue £265.3bn of gilts in 2024-25, according to budget documents, higher than £258.4bn expected by banks ahead of the announcement. Gilts sold off following the release of the numbers....
...The moves come ahead of the BoE’s policy meeting on Thursday, when rate-setters are widely expected to keep the benchmark rate at 5.25 per cent....
...Traders in swaps markets continue to bet on a likely 0.25 percentage-point Bank of England interest rate cut by August and two or three cuts by the end of the year....
...Thirteen of the UK’s primary dealers — who sell debt on behalf of the government — polled by Reuters expect the Debt Management Office to issue £258.4bn of gilts in the 2024-25 financial year, up 9 per cent...
...Even so, the central bank stuck to its forecast of three 0.25 percentage point rate cuts this year....
...The probability of the first 0.25 percentage point cut being delivered by June rose from about 50 per cent to 60 per cent, with traders moving to price in three cuts by the end of the year....
...The Fed’s benchmark federal funds rate is currently at a 23-year high of between 5.25 and 5.5 per cent. Read more here...
...Traders now place an 85 per cent probability on the Fed delivering its first 0.25 percentage point cut by June, up from 70 per cent early last week....
...The Fed has since December signalled it expected to cut its key interest rate by the equivalent to three quarter-point cuts, from the current range of 5.25 to 5.5 per cent....
...Hargreaves Lansdown said its gilt trading volumes have quadrupled over the past year, with more than 25,000 of its clients now holding one of the 57 gilts available on its platform....
...Two-year gilt yields, which reflect interest rate expectations, were down 0.01 percentage points at 4.25 per cent. Sterling also nudged lower, falling 0.2 per cent against the dollar at $1.2696....
...“In politics, when you straddle a fence, it does not end well,” said Mary Anne Marsh, a Democratic strategist. “[Trump] wants it both ways....
...The yield on two-year Treasuries, which tracks interest rate expectations, has risen this week about 0.25 percentage points to 4.73 per cent....
...The Bank of England is widely expected to hold rates at 5.25 per cent at noon, but attention will focus on the vote split among rate setters, along with any changes to its guidance and inflation forecasts...
...Support for sterling comes as traders shift to price in two or three 0.25 percentage point interest rate cuts from the Bank of England this year, compared with six quarter-point cuts that were priced in...
...Mary McDougall...
...Having priced in at least six 0.25 percentage point cuts for both the Federal Reserve and the European Central Bank in 2024 at the start of this year, traders are now betting on only three or four cuts for...
...Traders in swaps markets are pricing the first 0.25 percentage points ECB rate cut in April followed by a second in June and a third in July....
...Since December the Fed has been signalling that it expects to cut its key interest rate by the equivalent of three quarter-point cuts this year, from the current range of 5.25 to 5.5 per cent....
...The DMO will announce its 2024-25 issuance plans on March 6, after chancellor Jeremy Hunt presents his annual budget....
...Rate-sensitive two-year gilts yields nudged 0.02 percentage points higher to 4.25 per cent....
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