On 27/02/2021 20:16, Chris Green wrote:
Andrew wrote:
On 27/02/2021 15:47, Chris Green wrote:
Andrew wrote:

Since base rate is 0.1% and 10 year gilts are about 0.7%
you might as well stick the whole lot in premium bonds
until interest rates are closer to where they should be
(inflation + 1%).

You might as well spend it all! :-)


That will create inflation though, which the worry that
is sending US 10Y bond yields over 1.5% and heading north
since mid january.

1.5% is hardly big money yet is it!

It was enough to knock 20% off US tech valuations last week.

What people forget is that even when building societies were
offering 1,2,3 year deposits paying 7%, it was because 10-year
bond yields were slightly higher, and more importantly
inflation was probably about 6%. People don't notice inflation
until it gets out of hand and bank base rate (which was always
politically motivated) goes up.

If we are heading back to a period of higher inflation then it
might be better time to think about with-profits funds again,
shock horror.