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Friday 09 May 2008
Credit crunch concerns returned to haunt US equity markets, sparking a return to favour of government bonds.
Thursday 08 May 2008
Gilts surged ahead despite interest rates being kept on hold as investors bet that future cuts are inevitable.
Wednesday 07 May 2008
Gilts are in retreat ahead of tomorrow’s interest rate announcement by the Bank of England as traders bet that the Bank will wait until next month to feed through its next rate cut.
Tuesday 06 May 2008
Gilts surged ahead on Tuesday after the UK service sector indictor rose, raising expectations of an interest rate cut.
Friday 02 May 2008
Sellers of government bonds were out in force today after the release of better than feared US jobs data.
Thursday 01 May 2008
Gilt prices recovered in the afternoon after initially falling back on the release of the Bank of England’s Financial Stability Report, which suggest UK banks may be overestimating the scale of losses by more than half, adding this could hurt any recovery from the current financial crisis.
Wednesday 30 Apr 2008
Government bond prices moved cautiously higher in expectation of the announcement of a quarter point cut in US interest rates today.
Tuesday 29 Apr 2008
Gilts were in demand today on hopes that the Bank of England will cut base rates in an effort to revive the UK housing market.
Monday 28 Apr 2008
Another gloom-laden report on the UK housing market – this one from estate agent Savills – has revived hopes of a cut in UK interest rates next month, and boosted demand for gilts.
Friday 25 Apr 2008
UK growth slowed to a three-year low in the first quarter of 2008 as the credit crunch proved a drag on the financial services sector. Gilts responded by easing back, pushing the yield on the benchmark 10-year gilt one basis point higher to 4.79%.
Thursday 24 Apr 2008
Gilts fell back on a combination of profit taking after yesterday's Bank of England minutes and mixed UK retail sales data today.
Wednesday 23 Apr 2008
Gilts made headway today despite the release of the minutes from the last meeting of the Bank of England's Monetary Policy Committee (MPC), which showed two members were opposed to the central bank’s recently announced rate cut.
Tuesday 22 Apr 2008
The Bank of England’s aid package to the banking system continues to act as a drag on gilt prices, as investors come to terms with the idea that the Bank is likely to explore courses of action other than rate cuts to jump-start bank lending.
Monday 21 Apr 2008
Gilts advanced strongly today as the market digested the Bank of England’s aid package for the banking system.
Friday 18 Apr 2008
Gilts extended losses as UK public sector borrowing for the last financial year rose while better than expected results from US bank Citigroup saw investors rush back to stocks.
Thursday 17 Apr 2008
UK gilt prices fell sharply today as the UK Debt Management Office announced that its issue of £2.25bn of treasury stock maturing in 2042 was covered 1.69 times by bids.
Wednesday 16 Apr 2008
European bonds were lower after an unexpected rise in inflation suggested that near-term interest rate cuts were unlikely.
Tuesday 15 Apr 2008
Gilts were flat having moved ahead earlier after the UK inflation data came in above expectations.
Monday 14 Apr 2008
Government bond prices are little changed on both sides of the Atlantic today.
Thursday 10 Apr 2008
Gilt prices reversed earlier losses to rise after the Bank of England dropped its base rate to 5%, its lowest level since January 2007.