CNBC: Bank of England intervenes in bond market after historic sell-off
* U.K. gilt yields were on course for their sharpest monthly rise since at least 1957 as investors fled British fixed income markets following the new fiscal policy announcements.
* The measures included large swathes of unfunded tax cuts that have drawn global criticism, including from the IMF.
LONDON — The Bank of England will suspend the planned start of its gilt selling next week and begin temporarily buying long-dated bonds in order to calm the market chaos unleashed by the new government’s so-called mini-budget.
Yields on U.K. government bonds, known as “gilts,” were on course for their sharpest monthly rise since at least 1957 as investors fled British fixed income markets following the new fiscal policy announcements.
The measures included large swathes of unfunded tax cuts that have drawn global criticism, including from the IMF.
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WNU Editor: The Bank of England is panicking.... Bank of England will buy UK bonds at 'whatever scale' necessary to halt crash (CNN). If this does not stabilize, the global impact on markets, credit, and interst rates will be massive.
This is not like the financial crisis of 2008. This is worse.
Update: CNBC's Jim Cramer is correct that the Bank of England panicked this morning (see video below):
Bank of England Forced To Rush In And Stabilize U.K.'s Bond Markets After The Pound Crashes
Pound tumbles despite Bank of England intervention in markets - as it happened -- The Guardian
Bank of England announces gilt market operation -- Bank Of England
UK central bank intervenes in market to halt economic crisis -- AP
Bank launches emergency intervention in markets after Kwarteng mini-budget -- The Guardian
Bank of England takes emergency action to stabilise UK economy -- Euronews
Bank of England launches bond-buying programme to prevent 'material risk' to UK financial stability -- SKY News
Bank of England to buy UK bonds in attempt to avert financial risk as markets panic -- ABC News Australia
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