The Bank of England called the Financial Times rumors “inaccurate” about its possible decision to further postpone the sale of billions of pounds of UK government bonds.
The start of the Gilt sale – as part of the BoE’s Quantitative Tightening program – was expected by the end of the month, after the postponement from the departure date, which was initially set in early October.
As the Guardian reports, there is now only two weeks before the Bank of England governor presses the QT (Quantitative Tightening) button, starting to reduce the inflated balance sheet from UK government bonds he has bought over the years.
However, some analysts point out that a postponement may still be announced.
That said, the pound and UK bonds took the BoE’s clarification badly, heading lower after yesterday’s bullish blaze.
The return of sells on bonds brings 30-year gilt rates up 6 basis points after news of the UK central bank note. The pound accelerated to the downside, losing more than 0.70% against the dollar to $ 1.127.
Yesterday, both the pound and the Gilts were supported by statements from Jeremy Hunt, the new chancellor at the UK Exchequer who, with his first speech as the new finance minister, announced the withdrawal of almost all the tax cuts previously announced by the UK. predecessor Kwasi Kwarteng, who left the scene after an embarrassing turnaround by the Liz Truss government on the maxi tax cut plan announced three weeks ago: a plan that the markets had promptly rejected.