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 clear in contact with the banks at senior level.” The Bank had been forced to step in two weeks ago after the yield on gilts soared following Mr Kwarteng’s statement. The 59-point drop, which shaved 0.9 per cent off the index’s value, came after the Bank of England warned that the proportion of mortgage holders who might face difficulty meeting payments could rise to financial-crisis levels by the end of next year.

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History of this topic

UK Bond Sale to Gauge Investor Appetite After Market Turmoil
1 day, 8 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. …

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 …

Retirement giant backs UK gilts amid bond market rout
1 year, 3 months ago

Retirement giant backs UK gilts amid bond market rout

The Telegraph  

The UK’s biggest long-term savings and retirement business has started buying gilts for the first time in two years despite a renewed bout of bond market turmoil. Phoenix Group, which manages £269bn on behalf of 12 million customers, said it now believed gilts offered “good value” relative to other assets and had started moving money into British government debt. Phoenix, …

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 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 signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales
2 years, 3 months ago

Bank of England signals it won't keep borrowing costs down as it rejects £1.9bn of gilts sales

The Telegraph  

It came as a top Bank official urged policymakers to increase interest rates aggressively to curb inflation. Ms Mann, who voted to increase interest rates by 0.75 percentage points last month, said history suggested price rises were more likely to be “stabilised using the front-loaded strategy”, even if policymakers had to reverse course later. Julian Jessop, an independent economist and …

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 …

Pension funds crisis forces £65bn bailout by Bank
2 years, 3 months ago

Pension funds crisis forces £65bn bailout by Bank

The Telegraph  

Britain’s pension funds were on Wednesday at the centre of the financial crisis sparked by the mini-budget forcing the Bank of England to launch a £65 billion emergency bailout. The Bank warned of a “material risk to UK financial stability” and stepped in to buy long-term gilts, as plunging markets for UK debt sent borrowing costs spiralling and forced pension …

How the Bank of England is scrambling to stabilise markets
2 years, 3 months ago

How the Bank of England is scrambling to stabilise markets

The Telegraph  

The scale has not yet been decided. It is not the Bank’s job simply to intervene when investors ditch bonds and so the Government’s cost of borrowing rises. The initial plan is to buy bonds over two weeks, but the Old Lady also said “the purchases will be carried out on whatever scale is necessary to effect this outcome” while …

Bank of England urged to call emergency rates meeting next week to rescue pound
2 years, 3 months ago

Bank of England urged to call emergency rates meeting next week to rescue pound

The Telegraph  

The Bank of England has been urged to raise interest rates as soon as next week to help the pound from further weakening. Meanwhile, UK bond yields were on the rise, with the 10-year gilt yields seeing their biggest one-day surge on record in Bloomberg data. Deutsche Bank analysts said there are "very strong signals" that the market is no …

Liz Truss sails into uncharted waters – without Bank of England support
2 years, 4 months ago

Liz Truss sails into uncharted waters – without Bank of England support

The Telegraph  

But as well as the Bank going from big buyer to big seller, there are signs foreign investors are less keen than they once were to hold sterling assets. Shreyas Gopal at Deutsche Bank says “significantly” higher yields on gilts may be needed to tempt international investors to fund large-scale borrowing. Ensuring markets can digest the volume of bonds depends …

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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