UK's market chaos, contagion risk
The BOE purchased $1.07 billion of securities maturing in 20 years or more and added that it will be buying up to $5.31 billion a day until October 14. This means that the bailout could rise to around 65 billion pounds ($69 billion) of long-dated gilts.
Truss is facing a collapse in the pound, a massive market selloff, a surge in borrowing costs, deep recession risks, and a housing market crash. This week, sterling plunged to record lows against the U.S. dollar.
The symptom (dislocations in the gilt market) may have been addressed, but the underlying malady (irresponsible fiscal policy) continues to fester.
Barclays at 3%
Capital one at 3.25%
Edited by Rogerdodger, 29 September 2022 - 02:21 PM.