Bank of England Sold Bonds Outright Today to Speed up QT, Will Sell More at Regular Auctions: First Major Central Bank to Sell Bonds Outright by Wolf Richter • Nov 1, 2022 • 99 Comments It went fine. Gilt yields are way down from panic highs. Another dream of the “pivot” mongers goes to heck.
Return of the Bond Vigilantes Sent Shockwaves Around the Globe by Wolf Richter • Oct 18, 2022 • 104 Comments Deficits didn’t matter – until raging inflation brought the bond vigilantes back to life.
Bank of England Bought Only Small Amounts of Bonds even Today, Warns Pension Funds They Have “Only Three Days Left” to Unwind Derivatives with BOE Support by Wolf Richter • Oct 11, 2022 • 104 Comments BOE is caught between 10% inflation it needs to crack down on with rate hikes & QT and a crisis over derivatives that leveraged UK pension funds blew their brains out with.
Bank of England Explains Why Intervention Wasn’t Pivot to QE, But Effective Effort to Halt Death Spiral Triggered by Tax-Cut Panic in Gilt Market: Bond Purchases Near Zero this Week by Wolf Richter • Oct 6, 2022 • 73 Comments Underlying pension fund issues can now be dealt with in an orderly fashion.
Bank of England Bought No Bonds Today, after Buying only £22 Million on Monday, instead of £5 Billion per Day by Wolf Richter • Oct 4, 2022 • 107 Comments Carefully communicating this isn’t a Pivot to QE but a temporary “backstop” to calm a panic. And it calmed the panic with minimal purchases.
UK Chaos Economics: Fretting over “Financial Stability” & “Contagion” after Gilts Plunged, Bank of England Buys Bonds by Wolf Richter • Sep 28, 2022 • 262 Comments It wasn’t big hedge funds that blew up, but £1.5 trillion in leveraged pension funds. BoE stepped in to bail them out and prevent further contagion.
UK Bond Yields Do Monster Spike, Pound Plunges as Bond Vigilantes Rise from Graves, Go after Government’s Fiscal Recklessness by Wolf Richter • Sep 26, 2022 • 127 Comments Bank of England: won’t “hesitate” to hike rates “as much as needed.” Bond market fears much higher inflation and interest rates, for much longer.
