Bank of England announces gilt market operation

Bank of England announces gilt market operation

From bankofengland.co.uk

As the Governor said in his statement on Monday, the Bank is monitoring developments in financial markets very closely in light of the significant repricing of UK and global financial assets. This repricing has become more significant in the past day – and it is particularly affecting long-dated UK government debt. Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability. This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy. In line with its financial stability objective, the Bank of ... (full story)

Added at 5:16am

BoE TLDR via @Newsquawk pic.twitter.com/7VtGCejIcw
— Adam Linton (@Adamlinton1) September 28, 2022

Added at 5:20am

Bank of England delays bond sales, launches temporary purchase program after market turmoil

From cnbc.com

The Bank of England will suspend the planned start of its gilt selling next week and begin temporarily buying long-dated bonds in order to calm the market chaos unleashed by the new government’s so-called “mini-budget.” U.K. gilt yields are on course for their sharpest monthly rise since at least 1957 as investors flee British fixed income markets following the new fiscal policy announcements. The measures included large swathes of unfunded tax cuts that have drawn global criticism, including from the IMF. In a statement Wednesday, the central bank said it was monitoring the “significant repricing” of U.K. ... (full story)

Comments / Top
Subscribe

NotBoris

Sep 28, 2022 5:36am — Edited

Permalink

Why the hell no one holds kamikwasi & truss to account for the purpose of the dinner they both had with Crispin Odey days before the mini-budget? There has been talks but no action thus far on independent inquiry.

C Odey had been shorting GBP for a while!!!!!

The fact that bankers cap was removed did coincide with shorting the GBP - these money grabbing bxstards needs to be send to the gallow for messing up the economy.

There was no need for BOE urgent intervention if idiotic kamikwasi and the trussonomics was never announced nor implemented! All the signs were clear that trussonomics was and is a fairy tale, FFS! Like 2 over months ago???? Even their own tory blues leadership contender Rishi Sunak debunked trussonomics as nothing but fairy tale, short of calling it a fxcking unicorn!

And where the HELL is liz truss? She is an photography attention seeker, I do not see her since last Friday, WHERE THE F is SHE?

donroyalfx

Sep 28, 2022 6:14am

Permalink

Quoting Ftmofx

Disliked

Buy GBP. It is good news for GBP. Because...below The MPC will not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term, in line with its remit.

Ignored

But its now GBP is selling ...? trading is not that way It's important to be patient as a trader. Don't guess what will happen next. Use a strategy or strategies that works with good risk and trade management to be consistently profitable just my humble advice

frontier

Sep 28, 2022 5:20am

Permalink

Quoting penuelophir

Disliked

What is going to happen to pounds now?

Ignored

Renamed to ounces.

RossEdwards

Sep 28, 2022 9:25am

Permalink

Quoting Guest

Disliked

where can one find information on upcoming news announcements such as the one that happened today?

Ignored

Your Squawk provider .. if you use one..or otherwise Twitter. Subscribe to:
https://twitter.com/federalreserve / https://twitter.com/bankofengland / https://twitter.com/ecb?lang=en

MaverickCT

Sep 28, 2022 6:36am

Permalink

Quoting Chukie

Disliked

{quote} Would love to know what trading strategy you use. especially since it caught the upward spike. Thanks.

Ignored

I use 10 Bollinger bands i.e. m1 through M1 and I have the bottom 4 permanently visible on 2 monitors

Bones

Sep 28, 2022 6:01am

Permalink

Don't worry. It's not permanent
they can unwind their balance sheet later while losing all control in the bond market.

jordanvic

Sep 28, 2022 5:12am

Permalink

QT doesn't work. it destroys the market. Good luck to FED who is just starting full QT this month.

NotBoris

Sep 28, 2022 7:28am

Permalink

Credit to the author, none other than liz truss!

https://twitter.com/Daviemoo/status/1574524217538023424

Thanking the author for the clip for "remembrance day"

MaverickCT

Sep 28, 2022 5:12am

Permalink

Wow!
Closed out and took 200 pips - Am going to sit on the fence for a while till it calms down

MaverickCT

Sep 28, 2022 6:55am

Permalink

Quoting Torzone

Disliked

{quote} What is a Whale?

Ignored

LOL, I presume he means a BIIIG turn

Ftmofx

Sep 28, 2022 5:23am

Permalink

Buy GBP. It is good news for GBP. Because...below

The MPC will not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term, in line with its remit.

jblanked

Sep 28, 2022 6:12am

Permalink

Sheeesh got stopped for a 2% loss. On my hands til tomorrow NY session

DaJoWaBa

Sep 28, 2022 5:21am

Permalink

I read it as saying that the BOE is delaying the previously planned sale of its held Bonds and may be purchasing more, in tranches as an when suits at unspecified times.
I note from the initial 2-directional spike that although the market is basically returning to it's pre-announcement position, the move of the spike was larger to the up than that to the down. Analyse that.

NotBoris

Sep 28, 2022 5:21am

Permalink

Nice spike & pips

though it still some way off to tame the damage caused by kamikwasi and trussonomics.

Let's hope not a repeat of history - the intervention when Soro did his stunt - boom & bust.

Ftmofx

Sep 28, 2022 5:32am

Permalink

Dont fall in sell trap.

soumoun12

Sep 28, 2022 7:07am

Permalink

that was crazy almost blow my ftmo funded account but end up with some good profit thanks to boe

KareemAliFx

Sep 28, 2022 9:18am

Permalink

Dovish added shorts thanks to that nice wick

rehmatkhan00

Sep 28, 2022 5:49am

Permalink

nice try but failed and thanks for giving us an opportunity to short GBP

tush1822

Sep 28, 2022 7:50am

Permalink

Party time at Bank of England

Sep 28, 2022 5:09am

WTF spike

Sep 28, 2022 5:09am

The Bank will shortly publish a market notice outlining operational details....

so get ready to RUMBLE !!!!

chaoshydra

Sep 28, 2022 5:13am

Permalink

Quoting MaverickCT

Disliked

Wow! Closed out and took 200 pips - Am going to sit on the fence for a while till it calms down

Ignored

same.... money is in my pocket and i'm out for the day...

Torzone

Sep 28, 2022 6:52am

Permalink

Quoting Ftmofx

Disliked

{quote} The market will rebound. Wait for a whale. No valid reason for sell and you will see aggressive buy GBP

Ignored

What is a Whale?

Sep 28, 2022 5:09am

Print baby print..!

Sep 28, 2022 7:17am

Quoting zamans98

Disliked

GBP/USD will bounce to 1,10 by next NFP

Ignored

Is your crystal ball for hire???? lol

zamans98

Sep 28, 2022 6:57am

Permalink

GBP/USD will bounce to 1,10 by next NFP

Trader#6756

Sep 28, 2022 5:28am

Permalink

So UK goes even more full Zimbabwe - lol.

YaMakasi

Sep 28, 2022 5:52am

Permalink

What was that!!! SL was hit for my short positions and lost 1k usd((

Chukie

Sep 28, 2022 6:30am

Permalink

Quoting MaverickCT

Disliked

Wow! Closed out and took 200 pips - Am going to sit on the fence for a while till it calms down

Ignored

Would love to know what trading strategy you use. especially since it caught the upward spike. Thanks.

Ftmofx

Sep 28, 2022 6:41am — Edited

Permalink

Quoting donroyalfx

Disliked

{quote} But its now GBP is selling ...? trading is not that way It's important to be patient as a trader. Don't guess what will happen next. Use a strategy or strategies that works with good risk and trade management to be consistently profitable just my humble advice

Ignored

The market will rebound. Wait for a while. No valid reason for sell and you will see aggressive buy GBP