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Cost of Govt borrowing
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Uncle Sam
Posted: 13 January 2025 13:15:15(UTC)
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Joined: 16/01/2022(UTC)
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The headlines are stating that the cost of govt borrowing is going up - obviously as a result of the fall in the gilt prices.....but is the existing borrowing really going up immediately? The govt is still paying the same coupons on the gilts already issued - so are the headlines really only referring to new issuance at today's rates or am I missing something? (which is entirely probable).
Just curious.
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Wave Action
Posted: 13 January 2025 14:11:46(UTC)
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Uncle Sam on 13/01/2025(UTC)
Thrugelmir
Posted: 13 January 2025 14:17:52(UTC)
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Uncle Sam;330972 wrote:
The headlines are stating that the cost of govt borrowing is going up - obviously as a result of the fall in the gilt prices.....but is the existing borrowing really going up immediately?


There's always steady flow of refinanancing

Third column from the right. The figures are billions. Lots of low coupon Gilts heading to maturity.

https://www.yieldgimp.com/


No one can say that they are surprised. As all totally predictable.
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2 users thanked Thrugelmir for this post.
Uncle Sam on 13/01/2025(UTC), NoMoreKickingCans on 14/01/2025(UTC)
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