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...Turkish sovereign dollar bonds maturing in March 2029 are at present trading with a yield of about 7.6 per cent....
...UBS has said it aims to reduce costs by $13bn by the end of 2026, with a further $1.5bn of savings over the course of 2024....
...to cut interest rates more slowly than other major central banks....
...There is a concern that their earnings would fall when central banks cut their benchmark rates....
...household savings....
...The regional banks have been piling into long-dated sovereign bonds since January as a haven from the troubles of equities and the real estate sector, driving government borrowing costs to their lowest level...
...This is admittedly mostly a new framing of a now-mainstream observation: in today’s financial system central banks increasingly have to dealers-of-last-resort in addition to lenders-of-last-resort....
...Banks are unlikely to offer the same high yield on their savings accounts due to costs of intermediation. Direct debt sales to retail investors will therefore suck out funds from bank accounts....
...Emerging market sovereign bonds denominated in foreign currencies — mainly the dollar — and holding a triple B “junk” rating or lower have delivered a 4.9 per cent total return for investors this year....
...A reversal of that status quo risked upsetting financial stability. But on Tuesday, after eight years in the negative, the Bank of Japan governor Kazuo Ueda pulled it off in smooth style....
...And given the book cost accounting, a sovereign wealth fund could acquire the BoJ holdings for a fraction of market value without putting a dent in the central bank’s balance sheet....
...A Bank of America note published yesterday says: By a quirk of timing, the April energy price cap reduction is likely to help propel UK inflation to target, but things are not so pretty under the hood,...
...That’s on top of the Bank of England selling £100bn of gilts in the second year of its quantitative tightening programme....
...Reza Baqir Former Governor, State Bank of Pakistan (2019-2022); Global Practice Leader of Sovereign Advisory Services, Alvarez & Marsal, Dubai, United Arab Emirates...
...For Labour, it’s public dithering followed by U-turn after U-turn, the most recent on spending £28bn yearly for green investment....
...Private investors have piled into UK government bonds this year to lock in attractive yields as the Bank of England has kept interest rates at a 16-year high....
...Recent comments by President Xi Jinping that the People’s Bank of China (PBoC) should launch a bond-buying programme to create more domestic liquidity may be the first sign that exchange rate targeting is...
...In its outlook, the RBA revised down its expectations for economic activity as higher interest rates weighed on household spending and boosted savings rates....
...The bond can be held within a tax-efficient individual savings account and a self-invested personal pension....
...of progress from banks in giving customers with savings a better deal.”...
...Those murmured complaints became a cacophony after the financial crisis, when more onerous regulations killed proprietary trading desks and curtailed the ability of banks to make markets, and fears “bond...
...The bank takes an optimistic view, and wrote that “2024 may finally be the year that proves that an exit path to prolonged sovereign defaults indeed exists,” thanks to Zambia’s deal, along with reports that...
...To be regarded as genuinely risk-free, a sovereign bond should, at a minimum, offer negligible default risk and the backing of a fiscally conservative government....
...Then, from 2022 to 2023, fears of a recession due to central bank rate hikes and disagreement over the prospects of a soft landing kept markets highly sensitive to any indication of a downward inflection...
...As Alex explained in a post a few weeks back, Treasury auctions are structured so they can’t actually fail, but that’s not to say that yields won’t rise on a ‘tsunami’ of supply....
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