5% 25 Discussion Threads

[feuguru] 17/11/2023 13:11

Thanks. I’m looking for long duration rate product with tight bid/offer. Cash market can be as much as a big figure spread. Looking at wisdomtree 3x 10year, 3gil.l which look like they trade with a tight spread. I can also execute with a trailing stop.. just asking if there is anything else.

[tim 3] 17/11/2023 11:52

TR4Q up 10% since purchasing a few weeks ago.With many forecasting interest rates to drop at least a little over the coming months and years I think this is a great opportunity to buy particularly long dated gilts whether it's for capital gain or to lock in the yield or a bit of both.Of course if rates go up further could see prices drop but I think that's unlikely.IMO , Always DYOR.

[stevieweebie2] 17/11/2023 10:22

Not trading as such but just took a position in GLT-5.L

[feuguru] 17/11/2023 09:35

Anybody here trading Gilts, or rate related product?

[tim 3] 23/10/2023 19:40

Purchased the TR4Q ((2055) gilt today. at 87.

[tim 3] 07/10/2023 22:48

Well certainly been an interesting time for Gilts/bonds, so much for them being boring!

Been looking at the 30 year (TREASURY 4.25% 07/12/2055 (TR4Q) GILT).Currently its priced at multi year lows 88.29 and yielding 4.7%.

My thinking is its obviously a long dated gilt so price could change a lot but as recently as 2021 it was £2 so if the outlook for reduced interest rates improves there is potential for a decent return on capital and if it does not nearly 5% is a decent rate of return (currently!)

The risk is if the situation worsens and interest rates rise a lot further then the price could drop further and the yield would become uncompetitive (if you already owned it) Looking back in history in the 80's 30 year bonds were over 10% for years so obviously that would mean a considerable drop in capital even from here.

Could be wrong but with so many years of low interest rates am doubtful we will see those again but I guess thats the risk you take.

Another thing that has not escaped me is if you buy now you are buying in a sharp downtrend something I avoid with shares!

Like to hear anyones views?

imo dyor

[2wild] 24/8/2023 08:33

Income tax-free in a nicer. With a sip you can also reclaim income tax paid. Your provider will automatically regain 25%. Higher tax payers can also reclaim the difference on their tax form up to 55%.

[tim 3] 22/8/2023 16:45

Thanks so much goliard

Yes I did note the tax advantage and agree on the face of it there are better rates on savings.

I was also looking at the 2030 (tr30) gilt which is quite interesting as it currently yields 4.75% but as recent as Feb was trading at £1.10 10% higher than today.My thinking is that if the outlook changes and it recovers to that level gain you have a 10% gain and if it does not you still have 4.75 less tax a year return.

[goliard] 22/8/2023 14:33

Sorry that pound signs and other punctuation appear as other signs in posts when using a mobile.

[goliard] 22/8/2023 14:31

Hi Tim. There is no way of knowing where prices will go so it's about what you are happy with. This 5% gilt buying below 100p means almost zero risk 5% return. But you can get better on a bank account where 6% is available. If you are below £85,000 investment then bank is guaranteed by government so is likely better. In both scenarios above the income / yield is subject to income tax. For me a better option is short dated gilts like the January 2024. You can buy below 100p and if you hold then there is no tax to pay on the capital gain when you get your 100p returned at maturity. So a lower headline percentage but better for me as a 45% taxpayer. But it all depends on your personal circumstances.

[tim 3] 22/8/2023 14:18

Hi

Am new to gilts and doing research but some of the yields are looking interesting especially with the recent sell off.

A general question I know but do you think now is a good time to buy am looking to add some lower risk investments in my portfolio.

TIA.

[2wild] 24/6/2023 23:08

BUY NOW - Below 100p, for a guaranteed yield above 5%.

[miata] 05/12/2013 12:33

Planned gilt sales in 2013-14 will be reduced by £2.0 billion, to £153.7 billion. This reduction will be accommodated via a scaling down of the mini-tender programme.

[miata] 08/11/2012 08:00

The pundits said that if B.O. won, money would move into bonds, it will be interesting to see whether and for how long that continues.

[miata] 05/7/2012 12:12

The Bank of England's Monetary Policy Committee today voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £50 billion to a total of £375 billion.

[miata] 05/7/2012 08:37

Tom McPhail, head of pensions research at Hargreaves Lansdown stockbrokers, commented: 'All other things being equal, we would expect a further fall in gilt yields following an announcement of additional QE

[miata] 08/5/2012 17:34

130.195 (Reaction to French and Greek election results).

[miata] 12/4/2012 15:59

British gilt futures extended losses by more than 25 ticks after weak demand at the sale of 2 billion pounds of benchmark 20-year gilts on Thursday.
The June gilt future was trading at 116.07 at 0934 GMT, just before the auction result came out, and hit a session low of 115.77, 33 ticks down on the day, by 0943 GMT.
The UK Debt Management Office said it received a bid-to-cover ratio of 1.39 for the sale, down from 1.63 at the last auction of the gilt in November. The average yield was 3.015 percent, 10 basis points lower than in November.

[miata] 23/1/2012 14:39

Optimism regarding Greece's ability to make a deal with its creditors reduced investors' demand for the relative safety of UK and US bonds.

[miata] 01/1/2012 09:31

Gilts were the best performing major government bonds in 2011 – notching up 17 per cent returns, compared with US Treasuries' 9.8 per cent returns and 10 per cent for German Bunds.

[miata] 14/12/2011 11:27

ITALY SELLS 2016 BONDS AVERAGE YIELD 6.47% VS 6.29% ON NOV. 14

ITALY 2016 BONDS BID TO COVER 1.42 TIMES VS 1.47 ON NOV. 14

ITALY SELLS EUR3 BLN 4.75% 2016 BONDS; YLD 6.47%

ITALY SELLS 2016 BONDS AVG YIELD 6.47% VERSUS 6.29% ON NOV. 14