BoE to temporarily buy long-dated UK's gilt yields - Breaking The News

BoE to temporarily buy long-dated UK's gilt yields

28 September

1 min read

EPA-EFE/ANDY RAIN

The Bank of England announced on Wednesday the bank will temporarily buy long-dated United Kingdom government bonds (gilts) to restore "orderly market conditions," the day after bonds reached new multiyear highs.

The acquisition of gilts, however, will be "strictly time-limited," with the goal of addressing a specific issue in the market for long-term government bonds, noting that "the purchases will be carried out on whatever scale is necessary to effect this outcome" in order to reduce risks of lending conditions for UK families and businesses spreading, in line with the bank's objective of financial stability. The purchases will be made in the period from September 28 until October 14.

Earlier this week, Bank of England Governor Andrew Bailey stated United Kingdom's central bank will not hesitate to adjust interest rates as needed to bring inflation back to the 2% objective in the medium term.

boe bonds

BoE's Greene: No idea what US tariffs will look like later

25 April

Bank of England's Monetary Policy Committee member Megan Greene stated on Friday that central bank officials have "no idea" what US tariffs will look like "when the dust settles.""We are not sure if weakness in the UK economy is caused by demand or supply ... We are more worried about supply and really weak productivity growth," she added. "We should see some trade diversion coming from China."The official also mentioned worries regarding the effects...

BoE's Bailey: UK not close to recession

24 April

Bank of England Governor Andrew Bailey told CNBC on Thursday that the central bank is focused on the possible "growth shock" from tariffs imposed by the administration of United States President Donald Trump, but noted he doesn't think the United Kingdom is close to a recession at the moment."We're certainly quite focused on the growth shock," Bailey noted, stressing the tariffs could negatively impact UK growth. Asked about the Bank of England's next...

Bailey: UK is an open economy, US global relations matter

23 April

Bank of England Governor Andrew Bailey said on Wednesday that, seeing as the United Kingdom is an "open economy," its relations with the United States are not the only thing that matters, but also the US relations with the rest of the world."The UK is a very open economy, and therefore, it's not just the relationship between the US and the UK, it's obviously the relationship between the US, the UK, and the rest of the world that matters here. So, when we do...

30-year US Treasury yield tumbles as Fed drama settles

23 April

The United States 30-year Treasury yield fell on Wednesday as the commotion surrounding the Federal Reserve simmered down.After US President Donald Trump expressed dissatisfaction with Fed Chair Jerome Powell's work recently, saying that the latter would leave his post if he were asked to do so, the US head of state reassured the public that he wouldn't be firing Powell.The return on the 30-year Treasury bond slid by 16.3 basis points to 4.716% at 9:20 am...

This website uses cookies to ensure you get the best experience. Our Terms of Use and Data Protection Policy explain the data we collect, why we collect them, and how we may share them.