treasury

Newsfeed: Bank of England intervenes in bond markets again, warns of ‘material risk’ to UK financial stability

Newsfeed: Bank of England intervenes in bond markets again, warns of ‘material risk’ to UK financial stability

The Bank of England on Tuesday announced an expansion of its emergency bond-buying operation as it looks to restore order to the country’s chaotic bond market. The central bank said it will widen its purchases of U.K. government bonds — known as gilts — to include index-linked gilts from Oct. 11 until Oct. 14. Index-linked gilts are bonds where payouts to bondholders are benchmarked in line with the U.K. retail price index.

Newsfeed: 10Y Yield Soars To 12 Year High After Dismal 2Y Auction

Newsfeed: 10Y Yield Soars To 12 Year High After Dismal 2Y Auction

One minute after 1pm, the Treasury announced results from today’s sale of $43 billion in 2Y paper, which were nothing short of disastrous. The high yield – already the highest in 15 years – was almost a full percent, or 98bps, above August’s 3.307%, and stopping at a high yield of 4.290%, the auction tailed the When Issued 4.274% by 1.6bps, the biggest tail going back to feb 2020 when the bond market was similarly paralyzed, but back then it was due to covid.

Newsfeed: Bonds are in the midst of their worst crash since 1949, and the fallout could unravel some of the market’s most crowded trades, Bank of America says

Newsfeed: Bonds are in the midst of their worst crash since 1949, and the fallout could unravel some of the market’s most crowded trades, Bank of America says

The unraveling of the bond market will continue to batter stocks over the coming months, according to a Friday note from Bank of America. Bonds are experiencing their worst decline since 1949 as interest rates soar amid a global central bank campaign to fight inflation. The US Aggregate Bond ETF is down 15% year-to-date, while global bonds are down even more.

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