BNP Paribas SA said the Bank of England may need to buy about 100 billion pounds ($159 billion) of assets as part of a so-called quantitative easing plan to boost the economy.
“The fact that government bond yields are so low highlights a risk that asset purchases may have a smaller effect on yields than during the first phase of QE,” a team of interest-rate strategists led byPatrick Jacq in Paris wrote in a research note today. “We maintain our constructive outlook on gilts.”
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