#UK #Gilts #GBP #BoE – market pricing of @BankOfEngland policy rate moves, chart @BloombergTV

The interest the UK pays on its #publicdebt is rising, mainly due to around a quarter of all #gilts being indie-linked & therefore rising in cost in line with #Inflation.

You'll note on this (again) the UK is unusual

Whatever else is going on, the #Tories inability to find a workable strategy to combat inflation, allows them to continue arguing for fiscal #austerity... so no wonder they are not dong so much about inflation, it serves (again) their small state ideology (by other means).

2Y gilt nudged past 5.4% yesterday - bad news for anyone taking out a mortgage in the near future, and further evidence of eroding confidence in UK plc

#gilts #mortgages

It easy to forget how much tightening the #BoE have done over 2022 and how much is expected for 2023. We may find ourselves having a lot more discussion of how #QT effects the economy next year #gilts #monpol #ukrates

Interesting that gilt sales from FS acquisitions are being run on a reverse enquiry basis whilst those for QT are structured sales via an auction process. It implies a belief that two optically identical operations have differing market impact. #boe #gilts

https://www.bankofengland.co.uk/news/2022/november/boe-demand-led-approach-to-unwind-recent-financial-stability-gilt-purchases

RT @julianHjessop: Here's a simple chart to show that the #BankofEngland has not, in fact, had to spend "£65 billion" to prop up the #gilts market (and almost certainly won't, either)... 🤓

You can find the data here: https://www.bankofengland.co.uk/markets/bank-of-england-market-operations-guide/results-and-usage-data

🐦🔗: https://nitter.eu/john4brexit/status/1577358980258611201