9/28/2022, 12:36 PM (Source: TeleTrader)
more TeleTrader news

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

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.

Baha Breaking News (BBN) / AB