Bank of England sells bonds outright

[pmbug]

The Bank of England today, as part of its quantitative tightening (QT), sold £750 million in UK government bonds (gilts) at auction. These bonds were part of the holdings the BOE had acquired during the QE program since 2009. The bonds it sold today had a remaining maturity ranging from about three years to seven years.

And so the BOE became the first major central bank to sell bonds outright as part of its QT.

The bond sales come on top of the classic QT of letting maturing bonds roll off the balance sheet without replacement, which is what the Fed and the Bank of Canada are now doing.
...

Bank of England Sold Bonds Outright Today to Speed up QT, Will Sell More at Regular Auctions: First Major Central Bank to Sell Bonds Outright

It went fine. Gilt yields are way down from panic highs. Another dream of the “pivot” mongers goes to heck.

wolfstreet.com

 

[cheka]

frbny is doing it through attrition -- not buying more bonds to replace maturing bonds

Fed’s QT: Total Assets Drop by $206 Billion from Peak

What the Fed did in details and charts. And, well, “Primary Credit” is starting to show up again.

wolfstreet.com

 

[Goldhedge]

"And so the BOE became the first major central bank to sell bonds outright as part of its QT."

Does this mean Desperation?

 

[gringott]

I think it means Depression, a world wide Depression.

 

[cheka]

"And so the BOE became the first major central bank to sell bonds outright as part of its QT."

Does this mean Desperation?

only 750 million. smells more like propaganda

 

[Goldhedge]

yeah, I didn't think $750 million would buy more than a cup of coffee these days....

 

[gringott]

They pay $750 million to put up a simple webpage.

 

[Goldhedge]

A webpage that doesn't work no less!


I wonder if AMZN spent even half of that to date on theirs...?

 

[Voodoo]

Like two weeks after it had to emergency buy it's bonds. Let's see how that plays out Cotton.

 

[Voodoo]

They will probably do what Japan was forced to do years ago. First, buy back Long-bonds and issue short-term bonds to fund the buy backs. Just like the US FED threated to do through Yellen here recently. Then eventually even that will fail and they will destroy the bond market entirely and just become the only buyer.

 

[russell.cabbage]

Like two weeks after it had to emergency buy it's bonds. Let's see how that plays out Cotton.

Dodgeball reference?

 

[Viking]

Dodgeball reference?

Ya.

Bold strategy, Cotton also known as Bold Move, Cotton refers to a quote from the comedy flick Dodgeball, that became an animal advice image macro series online.

The format is mainly used to reflect on the risky or controversial nature of a course of action, taken on by a person or a group, especially in Sportsball competitions.

The phrase on the image macros is usually displayed as “Bold strategy, Cotton, let’s see if it pays off.”

 

[Bigfoot]