UK 30-Year Yield Tops 5%, Pound Jumps as Confusion Grips Market
Comment of the Day

October 12 2022

Commentary by Eoin Treacy

UK 30-Year Yield Tops 5%, Pound Jumps as Confusion Grips Market

This article from Bloomberg may be of interest to subscribers. Here is a section:

“Bailey’s words did sound harsh but from the BOE’s perspective they need to sound stern,” said Pooja Kumra, rates strategist at Toronto-Dominion Bank. “The BOE has been very receptive to markets. If chaos continues we doubt that they will run away.”

Eoin Treacy's view

The Bank of England is in a very difficult position. They desperately need to act against inflationary pressures but are constrained from using the tools at their disposal because of the risk posed by leverage in the financial system, not least in the pension sector.

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