Bank of England to temporarily finance UK government spending

[Martin@AS Financial]

Interesting story from Reuters:

Bank of England agrees to finance UK government if markets turn sour - Reuters

[AtW]

So guilts not selling well then

[_V_]

So guilts not selling well then

You mean Gilts?

[scooterscot]

Hang on, money is being raised without selling bonds? How does that work?

Lunatics - protect your purchasing power, land, gold, bitcoin, whatever takes your fancy. Central bank madness is going to result in a Japan style stagnation for years and years.

[ladymuck]

It was called an 'overdraft' on R4 this morning.

[BrilloPad]

You mean Gilts?

I think the spelling was deliberate.

[jamesbrown]

So guilts not selling well then

From what I recall, they were at 3x oversubscribed on the last sale.

At least for now, there's nothing to see here.

This is a standard mechanism, a drop in the ocean in terms of amount and the facility was also extended during the last crisis.

[AtW]

From what I recall, they were at 3x oversubscribed on the last sale.

At least for now, there's nothing to see here.

This is a standard mechanism, a drop in the ocean in terms of amount and the facility was also extended during the last crisis.

And who was the buyer - BoE?

[rootsnall]

And who was the buyer - BoE?

Yes, this method cuts out the middleman from taking their cut. The banks are quite happy to buy the govt bonds from the govt knowing they can then sell them back to the govt at a profit.

[scooterscot]

The gold standard can't return soon enough.