Bank of England steps in again to steady markets
“I’m not aware of the details of exactly what’s happened this morning. The short briefing message I’ve had from Treasury is that it’s a technical financial stability.”Bonds are IOU notes that the government uses to borrow money and pay a fixed amount in interest.
Government bonds are called GILTS and are bought and sold by investors, including pension funds, who like them because they are usually fairly stable, long term investments and help cushion them from interest rate volatility.People pay attention to the YIELDS - the amount of interest on the bonds which is described in % terms - because this shows investors’ confidence in them.
The BoE said: "These additional operations will act as a further backstop to restore orderly market conditions by temporarily absorbing selling of index-linked gilts in excess of market intermediation capacity."As pension savings are a long term investment there is time to ride out any market falls, as they bounce back in time - for example, from the global financial crisis and the Covid pandemic.the value of overseas investments when converted back into sterling will receive a boost.
“This should settle down but final salary scheme trustees have been urged to keep the resilience of their investment strategies under close review.”
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of England prepared to raise daily gilt purchases in final week of £65bn scheme\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Read more »
Bank of England boosts plan to calm market turmoilThe Bank of England will increase the daily limit on its emergency bond-buying programme during its final week.
Read more »
'Material risk' to UK financial stability continues, Bank of England warnsThe Bank of England has warned of 'a material risk to UK financial stability' and 'dysfunction' in part of the pension market despite its unprecedented intervention late last month.
Read more »
Bank of England warns of 'material risk' to UK financial securityBREAKING: The Bank of England has said it will further bolster its emergency bond-buying plan. It warned an ongoing rout in the gilts market poses a ‘material risk to UK financial stability’.
Read more »
Full list of bank holidays for 2022 and 2023 after Christmas day off movedScotland, England, Wales and Northern Ireland bank holiday dates are slightly different from each other.
Read more »