State savings new issue

A

alwaysonit

Registered User
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Who is expecting a new batch to be announced soon?
Are you expecting better or worse rates than the current issue?
From memory the new issues are usually released around bank holiday weekends - with one coming up and none having been released in a while I would not be surprised to see a release in the coming week.
 
alwaysonit said:
Who is expecting a new batch to be announced soon?
Are you expecting better or worse rates than the current issue?
From memory the new issues are usually released around bank holiday weekends - with one coming up and none having been released in a while I would not be surprised to see a release in the coming week.
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What's your reasoning for assuming new rates?
 
noproblem said:
What's your reasoning for assuming new rates?
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The cost of market funding for the state has increased about 100bps over the last 18 months and generally state savings rates track this (with a lag).

That said the state's cash borrowing needs are only €1bn this year and is set to turn negative over the next few years, so not much need for new funds.



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With deposit interest rates likely on an upward curve, I would not rush into any new purchase of the current issues. I have one savings cert maturing towards the end of June and will wait as late as possible before renewing.
 
tallpaul said:
With deposit interest rates likely on an upward curve, I would not rush into any new purchase of the current issues. I have one savings cert maturing towards the end of June and will wait as late as possible before renewing.
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I've seen no predictions or advice on where deposit rates are heading from any of our soooooooo knowledgeable financial gurus.
 
noproblem said:
What's your reasoning for assuming new rates?
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I didn't assume new rates.
I think there is a chance there will be a new issue soon because
1 - Historically new issues have been released over bank holiday weekends
2 - There has not been a new release in a while
 
noproblem said:
I've seen no predictions or advice on where deposit rates are heading from any of our soooooooo knowledgeable financial gurus.
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But you did see that inflation is now at 8.1%? Obviously one of the measures to counteract inflation is raising interest rates. It is logical to consider that deposit rates would move in line with any increase.
 
Ecb rate rises two this year .25 each time .
So I would expect a 10 year state savings rate of around 30 percent by end of year
 
Savvy said:
That would equate to a AER of 2.65%. Not sure they would be that generous just yet.
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Agree - I think going back to the 19% after 10 years level (at most) they had for quite a while, is more realistic by year end.
 
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