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Gilt yields and mortgage rates
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Uncle Sam
Posted: 06 January 2025 14:18:48(UTC)
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They seem to be going in opposite directions? The banks are announcing rate cuts yet gilt yields are going the other way.
Is this a temporary phenomenon or am I missing something?
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Thrugelmir on 06/01/2025(UTC)
Thrugelmir
Posted: 06 January 2025 14:39:24(UTC)
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Just a temporary phenomenon as the QT era chugs away quietly in the background. Disparity between gilt yields and mortgage rates is slowly eroding. Mortgage rates aren't falling significantly. Borrowing demand being subdued at the moment.
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Jay P on 06/01/2025(UTC), Uncle Sam on 06/01/2025(UTC)
Uncle Sam
Posted: 06 January 2025 23:30:13(UTC)
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Hadn't thought of that, thank you.
If the current 10yr gilt rate is ca 4.5% is there any way to estimate what the rate would be without the QT?
I guess if the current yields start to lead to higher mortgage rates then the QT may be scaled back.
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