Financial Markets Review

The pound posted its biggest weekly gain on record against the euro this week, in spite of Bank rate being reduced to the lowest level in over 300 years.

 

The pound posted its biggest weekly gain on record against the euro this week, in spite of Bank rate being reduced to the lowest level in over 300 years.

 

The US economy lost a further 524,000 non-farm jobs in December, while the official unemployment rate soared to 7.2% – the highest since 1993.

 

Weak UK and euro zone data and prospects of further cuts in interest rates helped push swap rates and short-dated bond yields lower.

 

UK 5yr swaps fell below 3%, but long-term bond yields rose on concerns about the funding of the burgeoning fiscal deficit.
 

 

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