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Gilt Prices Surge as BoE Announce Bond Purchases to Restore Stability

BOE
  • Gilt futures rally sharply as the Bank of England announce they are to hold a temporary purchase programme for Gilts from today, in an attempt to address market functioning.
  • Full Bank statement here: https://www.bankofengland.co.uk/news/2022/septembe...
  • "These purchases will be strictly time limited. They are intended to tackle a specific problem in the long-dated government bond market. Auctions will take place from today until 14 October. The purchases will be unwound in a smooth and orderly fashion once risks to market functioning are judged to have subsided."
  • Gilt futures rally sharply, touching 95.60, GBP also briefly spikes, putting GBP/USD at 1.0837 before the price action swiftly reverses.

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