Bonds rates keep falling - Savings - News - Moneyfacts

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Bonds rates keep falling

Bonds rates keep falling

Category: Savings

Updated: 05/02/2010
First Published: 05/02/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The trend in the fixed rate bond market continues to be downward, according to figures from Moneyfacts.co.uk.

The majority (67 per cent) of changes in the savings sector over last week were made on fixed rate products, with some reductions amounting to 0.50 per cent.

The short term bond market continues to suffer the most, with SAGA, Darlington BS and Newbury BS all withdrawing short term deals from the market.
The longer term market has been slightly more settled, although HSBC withdrew three and five year deals, while Aldermore cut the rates on its four and five year products.

"It seems that short term funding quotas from one and two year fixed rate bonds are being met and is causing rates to fall within this area," commented Darren Cook, spokesperson for Moneyfacts Group.

The findings follow on from Moneyfact.co.uk's findings that the average rates on long term bonds since March last year have jumped from 3.08 per cent to 4.54 per cent.

During the same period, the average rates on short term deals registered a mere 0.22 percentage points rise.

The figures suggest that providers have changed their focus having given their balance sheets a boost, and are now keen to attract longer term deposits onto their books.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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