“Bank of England risks a repeat of mini-Budget bond markets chaos, warn City traders
Analysts are pointing to mounting stress in UK gilts and the ‘repo’ market
The Bank of England risks hurtling toward another bond market crisis as new signs of strain bubble up and threaten to force another intervention, City traders have warned.
Traders have pointed to mounting stress in the so-called “repo” market and short-dated UK debt, known as gilts, just weeks after the post mini-Budget bond chaos pushed Britain’s pensions funds to the brink of collapse.
Repo markets are a crucial part of the financial plumbing where cash is lent in return for collateral such as government debt. They are an important source of short-term funding and collateral for banks.”
https://www.telegraph.co.uk/business...ts-chaos-warn/
Extra taxes not helping?
Analysts are pointing to mounting stress in UK gilts and the ‘repo’ market
The Bank of England risks hurtling toward another bond market crisis as new signs of strain bubble up and threaten to force another intervention, City traders have warned.
Traders have pointed to mounting stress in the so-called “repo” market and short-dated UK debt, known as gilts, just weeks after the post mini-Budget bond chaos pushed Britain’s pensions funds to the brink of collapse.
Repo markets are a crucial part of the financial plumbing where cash is lent in return for collateral such as government debt. They are an important source of short-term funding and collateral for banks.”
https://www.telegraph.co.uk/business...ts-chaos-warn/
Extra taxes not helping?
Comment