Ask a Wise Ape

Share this post

🦧 highest since sept '08

www.wiseape.fyi

Discover more from Ask a Wise Ape

Stay invested and cultured 🦧🦍
Continue reading
Sign in

🦧 highest since sept '08

Ape of Omaha
Sep 28, 2022
Share this post

🦧 highest since sept '08

www.wiseape.fyi
Share

click logo above for 50% off!

🇬🇧 pounded hard

 

the british pound is at an all-time low against the dollar

  • last friday, chancellor kwasi kwarteng revealed uk's £45b tax cut plan, the biggest in 50 years

    • while the package at its core aims to boost economic growth via tax cuts, the tax cut would have to be funded by government borrowing

    • even the imf chimed in and "openly criticised" the uk government, as the plan is likely to fuel already-red-hot inflation and further increase inequality

  • one british pound bought ~$1.35 at the beginning of this year, and it now only buys $1.07 as of writing

    • the pound is down 20.7% against the dollar year to date, 4.8% of it coming from just the last five days

 

uk 10-year note vs. us 10-year note

  • british goverment bond prices collapsed

    • because bond prices and yields move in the opposite direction, the 2-year british gilt yields rose as much as 54 basis points to 4.533%, the highest since sept '08

  • since friday, the uk 10-year yield (3.827%) has surpassed the us 10-year yield (3.688%), signifying that the market's already pricing in the event that the uk target rate would have to undergo a series of serious hikes to combat further inflation caused by the package

 

will most likely talk about a backtester tomorrow!

💡 something im thinking about

Loading...

that's all, folks 🐒

 

thanks for reading Ask a Wise Ape – if you’re enjoying our content, please share with your friends to check it out and subscribe!

Share

buy me a coffee :)

as always, i’m no financial advisor! (i’m no substitute for professional financial services)
Share this post

🦧 highest since sept '08

www.wiseape.fyi
Share
Comments
Top
New
Community

No posts

Ready for more?

© 2023 Ape of Omaha 🐵
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing