Britain’s budget and the bond markets

a time when so-called “bond-market vigilantes” could intimidate governments. “Over the course of my career we’ve gone from being rottweilers to poodles”, laments a 35-year market veteran. “You’d go and meet with the Treasury and say the market won’t wear this. Now you’re just thankful to buy something that has a positive yield rather than negative one.”GDP

Fiscal rules are supposed to guard against politicians’ propensity to run up debt by setting rules on how much borrowing is appropriate. Such rules are, in theory, aimed at reassuring investors in British government debt that they are lending to a credible counterparty. But investors pay less heed to them than politicians might imagine.

The role of the Bank of England, which bought more than £400bn of government debt as part of its quantitative-easing programme between 2009 and 2016 and now owns around a quarter of the outstanding debt, has got a lot of attention. But over the longer term, demand from foreign reserve managers and domestic pension funds has been more important.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks Extend Drop as Anxiety About Virus Fallout ReturnsMajor stock indexes and bond yields dropped, reflecting continued volatility in markets as investors around the world remain jittery about the economic fallout from the coronavirus outbreak. As concerns about trumps lies and incompetence continue to batter the markets Unfortunately, the stock market is completely manipulated Lucifer the sick devil decides who buys and where when and where, every thought is controlled the stock market is nothing more than a tool of the devil shame not a good god what's behind it but a wrong Plyr The sick man of North America
Source: WSJ - 🏆 98. / 63 Read more »

Virus fears grip markets again; stocks and bond yields slideNEW YORK (AP) — Fear dominated financial markets again on Thursday, and stocks fell sharply on worries about the fast-spreading virus outbreak. It's the latest shudder in Wall Street's wildest... Should I buy a house now yes or no Nothing Worse than a trump and a Coronavirus Mix Coronavirus Coronavirusnyc StockMarketCrash2020
Source: AP - 🏆 728. / 51 Read more »