Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Bank of England said Tuesday it will include index-linked gilts in its daily up to GBP10 billion gilt purchases, widening the scope of its up to GBP40 billion operation for the next 4 trading days.
In a statement, the BOE said its daily operations would now purchase up to GBP5 billion in conventional gilts and GBP5 billion in index-linked gilts. These additional operations "will act as a further backstop to restore orderly market conditions by temporarily absorbing selling of index-linked gilts in excess of market intermediation capacity,: the BOE said. The Bank added that following this decision, taken by the Bank's Executive, will temporarily pause its CBPS sales operations this week, with a confirmation of these restarting to be included as part of the Bank’s regular operational announcements.
Monday saw further turmoil in the Gilt market, as yields again rose sharply, despite attempts by both the central bank and the Government to smooth the waters. The yield on the benchmark 10-year Gilt rose 24 bps to 4.46%, while the yield on the 30-year rose 29 bps to close at 4.665%, as markets fret over the UK fiscal position, financial stability and increased Gilt issuance.
UK 30-Year Gilt yield on last 10 trading days
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.