UK bond yields plunge after Bank of England steps in to buy at ‘whatever scale is necessary’

UK gilt yields fell back from their highest in 14 years after the Bank of England said it would buy bonds at “whatever scale is necessary” to restore orderly market conditions. The 10-year benchmark gilt yield TMBMKGB-10Y, 4.013%, which moves in the opposite direction to prices, fell 49 basis points to 4.03%, having at one … Read more

Want to gamble your savings on a quick collapse in inflation?

Inflation is running at 8% or higher, depending on how you count it (and who’s counting). The Federal Reserve is clearly panicking. And the markets are clearly panicking too. So at this point, Uncle Sam would like to offer you a bet. How would you like to wager your hard-earned retirement savings that inflation is … Read more

Weekend reads: How to manage your finances when inflation is high and interest rates keeping shooting up

Financial markets have reacted in shock to the Federal Reserve’s strengthened vow to continue tightening of monetary policy to fight high inflation. The S&P 500 has declined 10.5% over the past month and the average interest rate on a 30-year mortgage loan has increased to 6.29% from 6.02% in only one week, according to Freddie … Read more

Markets are waking up to the notion that inflation hasn’t peaked

It only took a 0.1% advance in the rate of consumer-price inflation last month to send markets into their worst tailspin in two years. But what might seem like a relatively small uptick — coupled with the fact that the headline number actually declined on an annualized basis — belies a far more significant shift … Read more