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☆ Brazil's public debt drops for third straight month in September
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

BRASILIA, Oct 26 (Reuters) - Brazil's federal public debt fell for the third consecutive month in September, official data showed on Wednesday, with the net redemption of bonds again reducing the government's liquidity reserve. According to the Treasury, bond redemptions exceeded issuances by 76.4 billion reais ($14.29 billion). At the same time, interest payments on public debt reached 47.2 billion reais. As a result, the stock of federal public debt fell by 29.4 billion reais over August to 5.752 trillion reais. Given the recent inflationary relief in Brazil, the yield on inflation-linked bonds decreased, leading the average interest rate on the issuance of domestic federal debt to fall to 11.7% in September from 11.9% in August.

☆ UK gilt yields rise as BoE pooh-poohs report of delay to bond sales
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +2 min

The FT said the BoE would probably push back the start of its gilt sales from its latest scheduled date of Oct. 31, having already delayed it from an original date of Oct. 6. Register now for FREE unlimited access to Reuters.com Register"This morning's FT report that the BoE has decided to delay MPC gilt sales ('QT') is inaccurate," a spokesperson for the central bank said. Twenty- and 30-year gilt yields , were up by less, around 4 bps on the day. The two-year yield , which is most sensitive to short-term moves by the central bank, showed the biggest rise, up 13 bps on the day. British government bond yields soared in recent weeks after the government of new Prime Minister Liz Truss announced a string of unfunded tax cuts.

☆ U.K. Treasury chief scraps nearly all government tax cut plans
▼ + stars: | 2022-10-17 | by ( Associated Press | ) www.nbcnews.com time to read: +4 min

U.K. Treasury chief Jeremy Hunt on Monday reversed most of an economic package announced by the government just weeks ago, including a planned cut to income tax. In a bid to soothe turbulent financial markets, Hunt said he was scrapping “almost all” the tax cuts announced last month and signaled public spending cuts are on the way. The unfunded tax cuts fueled investor concern about unsustainable levels of government borrowing, which pushed up government borrowing costs, raised home mortgage costs and sent the pound plummeting to an all-time low against the dollar. Hunt was under pressure to act before financial markets opened on Monday because the central bank’s support for the bond market ended Friday. The U.K. currency is now trading for roughly the same price it was on Sept. 22, the day before Kwarteng announced the tax cuts.

☆ UK finance minister seeks to stem bond rout by rushing forward tax plan
▼ + stars: | 2022-10-17 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

"The chancellor will make a statement later today, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability," the finance ministry said. Register now for FREE unlimited access to Reuters.com RegisterSterling was up about 1% against the dollar in trading in Asia. Hunt met Truss over the weekend to overhaul her original economic proposals. No chancellor should seek to do that," the former foreign and health minister told BBC television in an interview broadcast on Sunday. Goldman Sachs said on Sunday it expected Britain's economy to shrink by 1.0% in 2023, a more severe contraction than its previous forecast of a 0.4% shrinkage, as Truss's tax cuts were reversed.

☆ New UK finance minister rips up Truss’ economic plan in stunning policy reversal
▼ + stars: | 2022-10-17 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

The stunning reversal would raise £32 billion ($36 billion), he said. “No government can control markets, but every government can give certainty about the sustainability of public finances,” Hunt said. “The United Kingdom will always pay its way.”The moves represent a gutting of Prime Minister Liz Truss’ flagship policies and leave her in a perilous political position. On Friday, Truss fired Kwasi Kwarteng, her previous finance minister, and reinstated a big tax hike on corporations. “A central responsibility for any government is to do what’s necessary for economic stability,” Hunt said.

Oct 14 (Reuters) - The U.S. Treasury Department is asking primary dealers of U.S. Treasuries whether the government should buy back some of its bonds to improve liquidity in the $24 trillion market. The Treasury is also querying whether reduced volatility in the issuance of Treasury bills as a result of buybacks made for cash and maturity management purposes could be a "meaningful benefit for Treasury or investors." But it let that exclusion expire and big banks had to resume holding an extra layer of loss-absorbing capital against Treasuries and central bank deposits. The Treasury Borrowing Advisory Committee, a group of banks and investors that advise the government on its funding, has said that Treasury buybacks could enhance market liquidity and dampen swings in Treasury bill issuance and cash balances. The Treasury is posing the questions as part of its regular survey of dealers before each of its quarterly refunding announcements.

☆ US Treasury asks major banks if it should buy back U.S. government bonds
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +2 min

Oct 14 (Reuters) - The U.S. Treasury Department is asking primary dealers of U.S. Treasuries whether the government should buy back some U.S. government bonds to improve liquidity in the $24 trillion market. Investors are worried about rising volatility in bonds as the Federal Reserve rapidly raises interest rates to bring down inflation. The Treasury is also querying whether reduced volatility in the issuance of Treasury bills as a result of buybacks made for cash and maturity management purposes could be a "meaningful benefit for Treasury or investors." The Treasury Borrowing Advisory Committee (TBAC), a group of banks and investors that advise the government on its funding, has said that Treasury buybacks could enhance market liquidity and dampen swings in Treasury bill issuance and cash balances. The Treasury is posing the questions as part of its regular survey of dealers before each of its quarterly refunding announcements.

And futures now assume the inflation fight will fall solely on the BoE and expect it to triple policy rates to as high as 5.8-6% next year. On Tuesday, the independent Institute for Fiscal Studies said Kwarteng needed 62 billion pounds ($68.22 billion) of spending cuts to keep public debt sustainable over time, with borrowing this year on course for 194 billion pounds and still above 100 billion by 2026/27 - over 70 billion higher than OBR forecasts in March. QE involves the purchase of mostly gilts from commercial banks in return for interest-bearing reserves at the central bank. And, unlike other major central banks, the BoE policy rate itself is the rate paid on those bank reserves. NIESR last year urged a solution to the problem whereby Treasury and central bank reduced the maturity mismatch by swapping longer-dated gilts back to Treasury to cut duration of its portfolios.

We think the rebalancing must be done," Bailey said at an event organised by the Institute of International Finance. "My message to the funds involved and all the firms involved managing those funds: You've got three days left now. Bailey was keen to distinguish between the temporary, financial stability nature of the latest intervention and previous quantitative easing stimulus. HEAVY LOSSESInflation-linked gilts, typically held by pension funds and known in the market as linkers, suffered a massive sell-off on Monday as the end to the BoE's programme on Friday approached. Simeon Willis, chief investment officer of pension consultants XPS, said he had seen pension funds selling "across the board" to find liquidity.

☆ Fire-fighting Bank of England forced to buy inflation-linked bonds
▼ + stars: | 2022-10-11 | by ( Andy Bruce | ) www.reuters.com time to read: +3 min

Citing a "material risk" to financial stability arising from a rout in British government bonds - known as gilts - the BoE said it would buy up to 5 billion pounds ($5.51 billion) of index-linked debt per day, starting Tuesday. Rather than increase the existing commitment to buy up to 10 billion pounds of gilts each day, as announced on Monday, the purchases will run alongside existing purchases of long-dated conventional bonds, now worth up to 5 billion pounds. British inflation-linked gilts - known as linkers - suffered a massive sell-off on Monday, despite the BoE doubling the maximum size of its buy-backs of conventional long-dated gilts. "Dysfunction in this market, and the prospect of self-reinforcing 'fire sale' dynamics pose a material risk to UK financial stability." To halt freefalling prices, the BoE was forced to pledge to buy as much as 65 billion pounds ($73.63 billion) of long-dated government bonds, known as gilts.

☆ Personal finance expert and 'Financial Grownups' podcast host Bobbi Rebell shares her top personal finance books for money security and preparing for retirement
▼ + stars: | 2022-09-24 | by ( Jennifer Streaks | ) www.businessinsider.com time to read: +6 min

Rebell, who has previously worked in various reporter roles, specializes in personal finance topics. "I was always fascinated with money — but from a personal finance perspective — so I took the leap to get into financial journalism," Rebell tells Insider. "I found that all of the financial news coverage focused on the economy and the stock market, but I knew there was a place for personal finance," Rebell says. "I was offered the opportunity to write a personal finance column and it really resonated with readers." Here are her four favorite personal finance books that will help you become a smarter investor.

☆ The UK pound slides to 37-year low against the dollar as the new British government's mini-budget spurs worries about further inflationary pressures
▼ + stars: | 2022-09-23 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The UK pound hits a fresh 37-year low against the US dollar on Friday. Pound sterling fell below $1.09 as the UK's new government outlined tax cuts and other moves to bolster economic growth. The pound fell below $1.10 for the first time in 37 years, tanking as much as 3.2% as the currency pair fell to $1.0899. The inflation rate of 9.9% is running at a near four-decade high. UK government bond prices fell, sending yields higher, and the FTSE 100 benchmark equity index lost about 2% on Friday.

☆ New UK finance minister Kwarteng seeks end to 'cycle of stagnation'
▼ + stars: | 2022-09-23 | by ( David Milliken | ) www.reuters.com time to read: +4 min

Paul Johnson, director of the Institute for Fiscal Studies (IFS) think tank, said Truss and Kwarteng's tax cuts could be the largest since 1988, and risked putting Britain's public debt on an unsustainable path. The IFS, together with U.S. bank Citi, estimate household energy subsidies will cost about 120 billion pounds over two years, while six months of business energy subsidies will cost 40 billion pounds. read moreThese are a one-off, and the bigger concern for the IFS is around 30 billion pounds of permanent tax cuts - starting with 14 billion pounds in reduced payroll taxes, confirmed on Thursday, and 15 billion pounds of cuts to corporation tax. For Kwarteng, tax cuts and deregulation are a way to end what he calls "a cycle of stagnation" that led to tax rates being on course for their highest level since the 1940s. "We will liberalise planning rules in specified agreed sites, releasing land and accelerating development," Kwarteng is expected to say.

☆ Reactions: Britain's finance minister unveils "mini budget"
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +5 min

Britain's blue-chip stocks (.FTSE)remained mired in the red, in line with a broader equity-market decline. FOREX: Sterling extended losses, falling 1.9% on the day to around $1.1047, having hit a new 37-year low earlier on. British homebuilders and household goods makers hit session highs, buoyed by the prospect of consumers getting tax breaks. The tax-cutting budget and ‘go for broke’ growth aims are unlikely to change the longer-term bearish GBP trend." If you get more fiscal stimulus and less monetary stimulus, that’s something that’s buoyant for the currency.

☆ New UK finance minister Kwarteng seeks end to "cycle of stagnation"
▼ + stars: | 2022-09-22 | by ( David Milliken | ) www.reuters.com time to read: +4 min

☆ Exclusive: Ukraine calls for bespoke IMF and World Bank programmes
▼ + stars: | 2022-09-20 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

U.S. dollar, euro and Ukrainian hryvnia banknotes are seen in this picture illustration taken in Kiev, Ukraine, October 31, 2016. read moreKyiv's goal though is a full-fledged IMF programme that would provide enough money and security to see it through the coming years. "I'm not sure whether standard tools of the IMF are really designed for this type of situation," he added. But its biggest single financing source is its own central bank, which has already had to print over $10 billion worth Hryvnia. Butsa said it is talking to the World Bank about a special facility for that money, where others, including private donors, could also contribute.

☆ How to Consolidate Credit Card Debt
▼ + stars: | 2022-09-15 | by ( ) www.wsj.com time to read: +16 min

By Kat TretinaIf your credit card debt feels out of control, you’re not alone. Opt for a 0% APR balance transfer credit cardWho it’s best for: Borrowers with excellent credit who can pay off their balance in six to 18 monthsIf you have a balance on your cards, a popular credit card debt consolidation strategy is to apply for a balance transfer credit card. Get a credit card debt consolidation loanWho it’s best for: Borrowers with good to excellent credit that need more time to pay off their debtIf you’re researching how to pay off credit card debt fast, another option is to apply for a debt consolidation loan. Unless you stick to a repayment plan, you could quickly rack up credit card debt on top of the debt consolidation loan. If figuring out how to pay down credit card debt makes you feel overwhelmed, another option is to work with a nonprofit credit counseling agency and enter into a debt management plan, or DMP.

☆ How to Cancel a Credit Card
▼ + stars: | 2022-08-24 | by ( ) www.wsj.com time to read: +9 min

If you have a metal credit card, return it by mail to the credit card issuer—your bank can send you a prepaid envelope at your request. According to popular credit advice, cancelling a credit card is a bad idea since it can hurt your credit. Say, you have two credit cards with a $2,000 credit limit and a total of $500 in credit card debt. First, if you have another credit card, you can try to request a credit limit increase to make up for the loss of available credit. Keep in mind, however, that a credit card application triggers a hard inquiry on your credit report, which can cost you some credit points.

Consolidating credit card debt refers to the process of taking out a new loan to merge credit card payments into a single payment. Transfer debt to a balance transfer credit cardIf your credit is strong, you may be able to leverage one of the best balance transfer credit cards as a tool to consolidate credit card debt. Ultimately, you're using a credit card to pay down credit card debt, which can be a slippery slope. So if you're struggling with credit card debt, you may consider borrowing against your 401(k) to consolidate credit card debt. Sign up for a debt management planIf your credit card debt feels impossible and you're considering bankruptcy, you might want to consider a debt management plan first.

Warren Buffett is a skilled investor who is studied, analyzed, and imitated by many. But the "secret" to Buffett's immense wealth is simply how long he's been investing, writes Morgan Housel in his new book "The Psychology of Money." "Effectively all of Warren Buffett's financial success can be tied to the financial base he built in his pubescent years and the longevity he maintained in his geriatric years," Housel writes in his book. And if you invest money at the level of someone like Buffett, the results become "ridiculous, impractical numbers," Housel writes. High returns are nice, of course, but they're difficult to come by and not the only way to build wealth, Housel writes.

I was encouraged to start saving for retirement at 24 because my job offered a 401(k) with a generous match. Pick a tax-advantaged retirement account that makes sense for your financial situation and goals, and set up automatic contributions. When it comes to retirement, saving something is always better than saving nothing, so don't be too hard on yourself if you haven't made it a priority until now. Pick a retirement account (or two)Get familiar with the features of each type of retirement account. She writes most frequently about saving money, planning for retirement, taxes, debt management, and strategies for building wealth.

☆ Does closing a credit card hurt your credit score?
▼ + stars: | 2020-07-14 | by ( Julian Kheel | ) edition.cnn.com time to read: +5 min

Technically, the action of closing a credit card account doesn’t have a direct bearing on your credit score, meaning most scoring models don’t subtract points just because you canceled a card. As we explained in our story about how opening a credit card affects your score, a significant portion of your credit score is based on your debt-to-credit ratio, also known as your credit utilization rate. How does canceling a credit card affect your credit score? And since credit utilization can count for almost one-third of your credit score, your score is likely to drop by closing a card in that scenario. Your entire history with a credit card stays on your credit report for up to seven years, even after you’ve canceled the card.

A credit card cash advance is money you borrow from your credit card's credit limit. Credit card cash advances can also affect your credit utilization, a major factor that determines your credit score. Understanding Credit Card Cash AdvancesWhat Is a Credit Card Cash Advance? Pros and Cons of Credit Card Cash AdvancesAdvantages of Cash AdvancesCash advances offer immediate liquidity, which can be a lifesaver in emergencies. The interest rate for a credit card cash advance is entirely contingent on the credit card issuer, but it's generally higher than the interest rate for regular purchases.

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