MM084: Carnage in UK Bond/FX Markets – What happened, what’s next?
Market Maker
00:00
Bank of England Buying Government Bonds - What's Going to Happen Next?
The Bank of England have said we will buy 80 billion pounds worth of government bonds. So how does that make an impact? What why does that bring yields back down? Well, this is where the government are coming in huge buyers. When there's a big buyer who arrives, well, it forces price up. And as prices forced up yields are forced back back. The 30 year UK government bond yield, which was sitting at about 3 and a half percent before all this thing kicked off,. It went from three and ahalf percent to just above five percent. This is where, oh my god, pension funds have got serious shortfalls on cash, they're having to sell bonds; Black
Play episode from 34:23
Transcript
