UK Bond Sale to Gauge Investor Appetite After Market Turmoil
1 day, 5 hours ago

UK Bond Sale to Gauge Investor Appetite After Market Turmoil

Live Mint  

The UK is set to get an indication of investor appetite for gilts, with its first bond sale since turmoil gripped the market last week. Tuesday’s sale could also be hampered if traders hold off buying until they’ve seen the latest inflation numbers from the UK and the US due on Wednesday, said to Megum Muhic, a strategist at RBC. Global Bond Tantrum Is Wrenching and Worrisome Start to New Year The yield on Tuesday’s inflation-linked note — which strips out the inflation component — is up more than half a percentage point since the last sale. Still, RBC’s Muhic said the sale could find support because it’s investors’ last opportunity to buy this particular security.

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History of this topic

UK debt woe as borrowing costs surge again amid fresh market jitters
2 months, 1 week ago

UK debt woe as borrowing costs surge again amid fresh market jitters

Daily Mail  

UK borrowing costs hit a post-Budget peak yesterday Yields on ten-year UK bonds – known as gilts – surpassed levels seen last week to reach a new one-year high of 4.541 per cent. Debt shock: Yields on ten-year UK bonds – known as gilts – surpassed levels seen last week to reach a new one-year high of 4.541% That has …

Bonds to be sold to savers amid fears of lack of demand for British debt
10 months, 3 weeks ago

Bonds to be sold to savers amid fears of lack of demand for British debt

The Telegraph  

Ordinary savers will be able to buy Government bonds directly from the Treasury in a move that will put individual investors on a par with big City institutions for the first time. The Debt Management Office will allow retail investors to take part in auctions of gilts, as UK government bonds are known, rather than having to wait to buy …

UK bond market rallies at sharpest pace in Europe amid interest rate hopes
1 year, 2 months ago

UK bond market rallies at sharpest pace in Europe amid interest rate hopes

The Telegraph  

The Government’s cost of short-term borrowing has fallen at the fastest pace in Europe today after the Bank of England’s chief economist raised hopes of interest rate cuts. The yield on two-year UK gilts, which are sensitive to moves in the outlook for interest rates, has dropped by eight basis points today to 4.61pc, its lowest level since June and …

Britain’s property market faces a reckoning – the house price plunge is only beginning
1 year, 9 months ago

Britain’s property market faces a reckoning – the house price plunge is only beginning

The Telegraph  

Invisible threat This presents a looming potential threat for the mortgage market. This is likely to mean more stringent “affordability tests” for borrowers, smaller loans in proportion to income, and higher mortgage rates on loans for buyers with smaller deposits. The British housing market is much more exposed to higher mortgage rates than other European markets. This is because debt-to-income …

Government bonds and pound rally amid pressure for mini-budget U-turn
2 years, 3 months ago

Government bonds and pound rally amid pressure for mini-budget U-turn

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK government bonds and the …

Bank of England insists emergency bond plan will end this week despite gilts sell-off
2 years, 3 months ago

Bank of England insists emergency bond plan will end this week despite gilts sell-off

The Independent  

The Bank of England says its emergency bond-buying scheme to calm markets will end Friday, even as the frantic gilts sell-off continued. The UK 30-year yield on gilts, UK government bonds, hit 5.1 per cent at one stage – its highest level for 20 years, according to Tradeweb. “The governor confirmed this position yesterday, and it has been made absolutely …

Bank of England warns risk of UK financial crisis hasn’t gone away
2 years, 3 months ago

Bank of England warns risk of UK financial crisis hasn’t gone away

CNN  

London CNN Business — For the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing. The central bank warned Tuesday that there was still a “material risk to UK financial stability” from a sharp-sell …

Bank of England to buy U.K. government bonds to stabilise financial markets
2 years, 3 months ago

Bank of England to buy U.K. government bonds to stabilise financial markets

The Hindu  

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and October 14 to stabilise financial markets, after a slump in British gilt prices since a government fiscal statement on Friday. Citing potential risks to U.K. financial stability, the BoE also said it would delay the start of a programme …

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash
2 years, 3 months ago

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash

CNN  

London CNN Business — The Bank of England said Wednesday it would buy UK government debt “on whatever scale is necessary” in an emergency intervention to halt a bond market crash that it warned could threaten financial stability. “This repricing has become more significant in the past day — and it is particularly affecting long-dated UK government debt,” the central …

Markets are now treating UK bonds like Greek and Italian debt
2 years, 3 months ago

Markets are now treating UK bonds like Greek and Italian debt

CNN  

London CNN Business — The pound may have paused its headlong crash toward parity with the US dollar, but the damage to the UK economy sparked by Prime Minister Liz Truss’ huge tax-cutting gamble is still rippling through financial markets. “This is a situation where government borrowing costs — and therefore all our borrowing costs — are incredibly vulnerable,” economist …

Bank of England poised to take bond-buying plan above $1 trillion
4 years, 2 months ago

Bank of England poised to take bond-buying plan above $1 trillion

Live Mint  

The Bank of England is set to pump up its huge bond-buying stimulus plan to more than $1 trillion on Thursday as Britain's economy takes a fresh hit from new coronavirus lockdowns and another possible blow from a no-deal Brexit. On the day England goes into a month-long "stay-at-home order", alongside restrictions elsewhere in the United Kingdom, the BoE looks …

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