Thursday, August 11, 2016

The Bank Of England QE Program Is Failing
Article explains how when the Bank of England (UK's central bank) tried to buy so much in bonds this past week, only a limited number of sellers showed up - "the Bank of England encountered an offerless market" .. why the lack of sellers - "Global bond yields have tumbled, meaning investors may be less willing to part with longer-term bonds that tend to offer higher yields than their shorter-dated equivalents. Long-dated U.K. bonds are in particular demand from pension companies that hold the securities to match their liabilities .. SocGen's Jason Simpson: “It is a bit of a surprise that this went uncovered in the first week of the operation, goodness knows what happens next week.”
LINK HERE to the article

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