Surging UK CDS ahead of Scottish Referendum

by Ashraf Laidi

Sep 16, 2014 13:17

UK CDS continue gaining following the biggest weekly increase in over 2 years. The 5-yr CDS is testing its 200-DMA for the first time since June2013. The UK Treasury has sought to calm bond market fears by guaranteeing the Scottish part of UK debt in case a newly independent Scotland goes on with its threat to not honour its obligations of the UK debt.  Part of the decline in interest rate hike odds has emerged from anticipation that the BoE would be forced into its “lender of last resort” role during the uncertainty-filled period following a “yes” vote, and preceding the official independence. So, can the UK handle such guarantees one year after emerging from a triple dip recession and barely graduating from the school of austerity?

Click To Enlarge

Click To Enlarge

More Hot-Charts

• EURUSD vs Bond yield Spread

  May 1, 2025 12:34 | by Ashraf Laidi
  سأرسل رسالة صوتية و كتابية توضيحية لأعضاء مجموعة الواتساب الخاصة حول هذه المخططات - Will send a detailed note on the latest technical parameters to our WhatsApp Bdcst Group...

• 30 mins pattern

  Apr 28, 2025 15:06 | by Ashraf Laidi
  سأرسل رسالة صوتية و كتابية توضيحية للمجموعة حول هذه المخططات - Will send a detailed note on the latest technical parameters to our WhatsApp Bdcst Group...
• 

  Gaps Update

  Apr 25, 2025 14:50 | by Ashraf Laidi
  سأرسل رسالة صوتية و كتابية توضيحية للمجموعة حول هذه المخططات - Will send a detailed note on the latest technical parameters to our WhatsApp Bdcst Group - -...