Post by aju on Oct 31, 2019 10:11:24 GMT
I've been getting acceptable rates on the 1Y recently than on the 5Y - this will probably change at some point - but have noticed an interesting thing that for me was a bit annoying.
So far returned funds, capital and interest, are being moved from the 5Y to the 1Y. The interesting thing I noticed today is that I set my 1Y to 5.4% and my 5Y to 5.2%. I expected that relent money lent on the 1Y would follow the 1Y relend settings however this is not the case in fact it seems the donor product determines the relend rate regardless of what the receiver product settings are set at in this scenario.
As an example £33 came available on the 5Y and was transferred to the 1Y but then lent out at 5.2% probably not going to get accepted very quickly so I can catch it but if I had not been watching so closely I could have lent out at a rate that I was not expecting.
If I have that right then since the markets are different in the new era - the 5Y is less volatile than the 1Y and higher punt rates on the 1Y at present can get sucked up quicker than those on the 5Y which is almost stuck near the MAX (5.0%) rates.
Edit: I see now that the targeted rate from the 5Y is changeable as well and in the "Total" screen it defines the rate and the movement so in reality if one changes the rates in the 1Y then to be accurate one has to change all other markets that are are relending into the 1Y. Something to think about for people who are wanting to control and select rates.
So far returned funds, capital and interest, are being moved from the 5Y to the 1Y. The interesting thing I noticed today is that I set my 1Y to 5.4% and my 5Y to 5.2%. I expected that relent money lent on the 1Y would follow the 1Y relend settings however this is not the case in fact it seems the donor product determines the relend rate regardless of what the receiver product settings are set at in this scenario.
As an example £33 came available on the 5Y and was transferred to the 1Y but then lent out at 5.2% probably not going to get accepted very quickly so I can catch it but if I had not been watching so closely I could have lent out at a rate that I was not expecting.
If I have that right then since the markets are different in the new era - the 5Y is less volatile than the 1Y and higher punt rates on the 1Y at present can get sucked up quicker than those on the 5Y which is almost stuck near the MAX (5.0%) rates.
Edit: I see now that the targeted rate from the 5Y is changeable as well and in the "Total" screen it defines the rate and the movement so in reality if one changes the rates in the 1Y then to be accurate one has to change all other markets that are are relending into the 1Y. Something to think about for people who are wanting to control and select rates.