Andy Bruce and William Schomberg
LONDON (Reuters) – British government bond prices surged on Wednesday after the Bank of England not only It has temporarily shelved plans to sell its gilt-edge bonds, but said it will start buying long-term bonds to calm the market.
20-year and 30-year gilt yields fell 47 basis points in early trade up more than The day after 5% – the highest level of 30 annual return since
years.
Ahead of the BoE decision, strategists said the market was characterized by very poor liquidity and pricing quality — a clear sign of market dysfunction.
year benchmark gilt yield is 4.53%, down47 The base point of the day, GMT 1056.
