[The Epoch Times, October 4, 2022](The Epoch Times reporter Huang Yunyun Hong Kong report) The Bank of England (Bank of England) issued a statement on Monday reiterating that it is willing to bid up to 5 billion pounds (about 5.65 billion US dollars) per day for long-term British For government bonds, the Bank of England rejected almost all offers. However, in the first four operations, the Bank of England bought about less than 3.7 billion pounds of British government bonds.
The “Financial Times” pointed out that the Bank of England announced last week that it will buy up to 5 billion pounds of British government bonds with a remaining maturity of at least 20 years from September 28 to October 14, with a total size of 65 billion pounds. to curb a surge in bond yields that threatens financial market stability.
On the fourth day, the Bank of England announced to buy 22.1 million pounds of bonds, the smallest since the operation, and rejected the offer of 1.9 billion pounds. For the first four purchases of British government bonds of less than 3.7 billion pounds by the Bank of England, it is reported that the Bank of England should have been able to purchase 20 billion pounds during this period, and the British bonds offered in the tender offer only less than 8 billion pounds, which is That means the purchase could end up being well below the £65bn scale.
However, only a small amount of gilts was available to the Bank of England through the purchase programme, a marked departure from what was done under the previous quantitative easing programme, and the Bank of England bought fewer gilts because it rejected overpriced offers.
The Financial Times quoted UBS rates strategist Rohan Khanna as saying it was a message from the Bank of England that the central bank would be cautious about how much it would spend if it did not appear to be still in crisis.
The Bank of England’s announcement sent the yield on the 30-year British government bond tumbling to 4% from a 20-year high above 5%. The 10-year gilt yield fell 50 basis points to 4.01%, while the 2-year gilt yield fell the same to 4.24%. @
Responsible editor: Chen Wenqi