RE: When, when oh when.....28 Sep 2023 21:09
This might help explain:
British government bonds slumped on Thursday as part of a Europe-wide sell-off, with the price of 30-year gilts falling to their lowest since October 2022, when markets were roiled by then-Prime Minister Liz Truss' "mini-budget" plans.
Thirty-year gilt yields, which move opposite to prices, surged by more than 17 basis points on the day to peak at 4.964% at 1251 GMT, pushing past previous highs set last month to their highest since Oct. 12, 2022.
Ten-year gilt yields were up 17 bps on the day at 4.53% versus an 11 basis point rise for German 10-year bonds, reflecting 10-year gilts' biggest daily price fall since Feb. 6, and not far off the market moves seen last October.
Earlier on Thursday, the Bank of England said it was starting work on introducing a permanent facility to support pension funds and insurers which get caught out when liquidity dries up in the gilt market - a problem which amplified last year's gilt market slump.
The fall in euro zone debt prices was led by a slide in Italian bonds after the government cut growth forecasts and said it would borrow more.
The rise in 10-year gilt yields was similar to that of their Italian equivalent, despite a lack of major economic news in Britain.
At the same time it has become a bad stock that’s only worth trading as it never holds on to it’s well earned gains, which is my own opinion. The main opinion on this site appears to be it’s all about the dividend…? I fail to understand this.