The Yield
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| Google books | books.google.com |
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| Originally published | July 2, 2019 |
| Authors | Tara June Winch |
| Genres | Literary Fiction |
| Date of Reg. | |
| Date of Upd. | |
| ID | 2098243 |
About The Yield
The yield in English is the reaping, the things that man can take from the land. In the language of the Wiradjuri yield is the things you give to, the movement, the space between things: baayanha. Knowing that he will soon die, Albert ‘Poppy' Gondiwindi takes pen to paper. . . .
Bank of England wasn't briefed on mini-budget
... When more investors buy bonds than sell them, prices rise and the interest rate - known as The Yield - drops...
Mini-budget scrapped: A simple guide to why plan was dropped
... The Yield is a way to describe the amount the investor gets...
Liz Truss set to unveil plans to cut energy bills for millions
... The cost of UK government borrowing is currently at its highest level for eight years, with The Yield on 10-year bonds rising above 3%...
Cyber security: Global food supply chain at risk from malicious hackers
... " Hacking into a fleet of tractors, suddenly, you ve got the power to affect The Yield in whole areas of the country...
Ukraine war 'catastrophic for global food'
... and if that s removed from the field for some crops, [The Yield] will drop by 50%, " Mr Holsether said...
Ship-load of 'toxic' Chinese fertilizer causes diplomatic stink
... " Experts like Professor Buddhi Marambe from the University of Peradeniya add that converting to total organic farming will harm the agricultural economy because The Yield of staple crops like paddy could drop sharply...
Brexit: pound surges on renewed hopes for a deal
... The Yield on 10-year British government bonds was on track for its biggest three-day increase since 2017...
Trump plays down fears of US recession
... On Wednesday last week, US stock markets fell by about 3% when The Yield curve inverted, although they had recovered lost ground by the end of the week...
Bank of England wasn't briefed on mini-budget
The Government did not tell The Bank of England about its tax cut plans before the mini-budget, one of its deputy governors has said.
In The Event , the mini-budget sparked market turmoil, with The Bank having to step in to stabilise pension funds.
The Bank could have advised the Government on the possible market reaction, Sir Jon Cunliffe said.
The Government was criticised for bypassing some independent scrutiny of its plans before making them public.
The mini-budget, which was put forward by former Chancellor Kwasi Kwarteng and Prime Minister Liz Truss , included huge tax cuts but it was unclear how they would be funded.
This led to a sharp drop in the pound against the dollar, and spooked investors about Government Debt , leading to The Risk of some pension funds collapsing.
The Bank of England was forced to step in to buy Government Debt to stop a fire-sale by some pension funds of assets which could have led to their collapse.
Following The Market turmoil, criticism by institutions including the IMF, and a huge drop in the polls for the Conservatives, Mr Kwarteng was sacked by his close political ally Liz Truss .
At a meeting with MPs on Tuesday, Sir Jon said The Bank of England had not been consulted on the Government plans before they were announced.
" We did not have a full briefing of The Package The Night before, " He Said . " Had they asked us what The Market reaction would be, we would have interacted with them.
" But it is not our responsibility to give the Government advice on fiscal policy. This would have been for the Treasury to advise on The Market reaction. "
However, He Said ultimately the decision on How To proceed lay with ministers.
At Prime Minister 's Questions in The House of Commons on Tuesday Labour accused Ms Truss of " crashing the economy".
The Prime Minister did not address the mini-budget, but said: " Interest rates are rising across The World and the economic conditions have worsened. "
However, according to experts including The Bank of England, the mini-budget on 23 September also had a significant impact on the financial markets.
In a letter to MPs on the Treasury Committee on Monday, Sir Jon wrote: " There has been a particular increase in volatility in UK markets" and pointed out that: " The Five largest daily moves in the 30-year inflation-linked gilt, in data that dates back to 2000, have all been since the 23 September" which was when the mini-budget was unveiled.
Gilts are a form of IOU which the Government sells to borrow money to fund its spending plans.
A career Bank of England official like Jon Cunliffe doesn't overstate The Situation .
But the two key answers he gave the Treasury committee are very serious.
He Said that The Bank wasn't told about the unpublicised measures in the mini budget, and that had it anticipated a risk to financial stability it would have warned the Treasury.
Those are serious because it had every reason to anticipate instability.
The Day before the mini-budget, The Bank had announced it would start to sell some of the £895bn of Government bonds it had bought to try and keep the cost of borrowing down.
When more investors buy bonds than sell them, prices rise and the interest rate - known as The Yield - drops.
In 2020/2021, The Bank 's presence as a buyer in The Market was crucial in enabling Rishi Sunak to borrow More Than £300bn in to support the economy through Covid, without any offsetting tax rises or spending cuts.
The Treasury could borrow vast sums by issuing as many bonds as it liked to investors who didn't insist on higher interest rates to compensate for The Risk of lending to a hugely-indebted Government - because they could always sell the bonds straight away to The Bank .
By contrast, when the mini-budget was announced, there was no such buyer propping up bond prices, and therefore keeping down yields, because The Bank had announced it was now a seller.
That led to chaos.
But you only get to hear about potential unintended consequences of budget measures if you ask The People who know.
Source of news: bbc.com