Hi guys,
I am looking to improve my understanding on bonds, in particular - gilts.
Several questions if I may, based on investing.com website data:
- Why is 1M, 3M, 6M is not updated live? - is that because there are no bonds maturing or are they just not traded..? Seems to be only at 7am...
- This image from yesterday's news article shows (same as above?) figure of implied rate and has (a calculated?) implied BP. I understand that Implied BP is effectively 0.716% out of 0.75% possible and thus 84% probability of a 0.25% hike, but how exactly is 0.6706 is converted to be 0.716%?
- From 1M bonds here, how can I calculate that Implied BP rate..? The bond matures on 20 Aug, so I assume it has X days on 0.5% rate (until BoE decision) plus Y days on 0.716% rate (discounted from 0.75 as not completely certain). I've tried to reverse-calculate, but just cannot figure it out. Any ideas how to do it?
Thanks and sorry for basic questions, trying to get my head round these!
Submitted July 31, 2018 at 05:40AM by igurdon https://ift.tt/2LIt0xb
