Bank of England Reportedly Considering Halting Long-Dated Gilt Sales Amid Market Turmoil
The Bank of England is reportedly considering halting the sale of its long-dated government bonds, a significant potential adjustment to its quantitative tightening (QT) program, according to The Daily Telegraph. The Monetary Policy Committee (MPC) will decide on the QT plan for the next year this Thursday, and whether to continue selling long-dated gilts will be part of the discussion. This move comes amidst sustained pressure on long-dated UK government bond prices, with the 30-year gilt yield currently around 5.9%, a high not seen since the 1990s.
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