The United Kingdom's central bank conducted a bond auction, offering £750.0 million in bonds, receiving bids totaling £2.30 billion, resulting in a cover ratio of 3.06. The 20-Year Treasury Gilt Auction had an actual yield of 4.580%, higher than the previous 4.495%. Central banks are selling bonds to purchase gold, as gold is seen as a bet on future economic conditions and not just an inflation hedge.
Gold has been going nowhere ever since the bets on rate cuts have fallen and the economy holding up. That's why it dropped yesterday on weekly claims. Gold is not an inflation hedge, it's a bet that inflation will cause Feds to induce a slowdown and yields drop. Like bonds it's…
Gold has been going nowhere ever since the bets on rate cuts have fallen and the economy holding up. That's why it dropped yesterday on weekly claims. Gold is not an inflation hedge, it's a bet that inflation will cause Feds to induce a slowdown and yields drop. Gold like bonds…
Gold has been going nowhere ever since the bets on rate cuts have fallen and the economy holding up (enough). Gold is not an inflation hedge, it's a bet that inflation will cause Feds to induce a slowdown and yields drop. Gold like bonds is forward looking.
Central banks are selling bonds to buy gold. https://t.co/XyXKIJzGh3
🇬🇧 United Kingdom 20-Year Treasury Gilt Auction $GBP Actual: 4.580% Previous: 4.495%
Central bank auctions £750.0 million in bonds, with bids totaling £2.30 billion. Gilt sale operation cover ratio is 3.06. #CentralBank #Bonds #GiltSale