7 Aug 2013
UK Bonds and Pound mixed on Carney
FXstreet.com (Barcelona) - UK Bonds and Pound mixed on Carneys report.
Post his Inflation report and press conference, the 2 year U.K. Bonds were unchanged 0.38%, while 5-year UK Bond are currently up 0.01 at 1.41% and 10 year UK Bonds are also up 0.02 2.50% after initially dropping on his delivery of the report. The pound is mixed although currently bid above 1.5400 at the highs of the day after initial dropping to 1.5202.
Inflation Report
Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the Boe will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.
Post his Inflation report and press conference, the 2 year U.K. Bonds were unchanged 0.38%, while 5-year UK Bond are currently up 0.01 at 1.41% and 10 year UK Bonds are also up 0.02 2.50% after initially dropping on his delivery of the report. The pound is mixed although currently bid above 1.5400 at the highs of the day after initial dropping to 1.5202.
Inflation Report
Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the Boe will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.