UK Treasury bill - Treasury bill chat

You are nit picking for sake of it.

Yield is yield whether it derives from a yield on maturity of a bond or interest from a savings account. The fact is these bonds have been falling month on month while the T212 interest has remained steady and is currently well above the last gov bond.

I will also correct you about the cash ISA from T212, it is held in banks only with no MMFs, so is basically 100% risk free if within the FSCS limits.

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Because they are literally different products. By your argument you’d be better putting your money in UKW because the ‘interest rate’ is higher than 212

If you enable interest, we will hold your cash in qualifying money market funds and banks.

It’s not me saying it, that’s 212 saying it.

You also have misunderstood what FSCS is for. It does not protect you from 212 changing the interest payouts. You agreed when you enabled interest payments that 1. They can use money market funds, and 2. The rate you get paid is subject to immediate change at any time

FSCS may provide compensation (not protection) from the bank failing or misusing funds for example. It would not protect you from 212 failing to pay the interest you expected them to pay if they decide to change the payout at any point.

As above, if you have enabled interest then they can at any point decide to also use money market funds (I’m not sure how that would be reflected to you, it sounds like they’re a little more transparent than they used to be). If you opt out of interest, then they still collect interest on your money but only in banks, and they keep it rather than sharing it.

UKW is an equity, the risk of capital loss, a savings account has no risk of capital loss and you get paid interest. Yes it’s a different product, I never said it was the same product, however both a treasury and a savings account give the investor yield, interest call it whatever you damn like, that is my point.

T212 is paying me a higher % return than gov bonds, over a month by month timeframe, if this changes and gov bonds suddenly provide a higher return, then it’s time to revisit.

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Glad we agree it’s not the same. And yeah not once did I suggest you shouldn’t move money to another instrument or not.

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Anyone think last weeks miss was possibly due to the markets expectations that there would be the cut this week (as last week has 3 weeks at the lower rate) there for we may not get a large drop this week ?

The vibes were more dovish than expected from the MPC today and the actual 1m yield dropped 20 basis points, so I’m expecting another chunky drop tomorrow.

Nice to be wrong here! 4.43%. No chunky drop today

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We must be close to or at only 2% above inflation.