Bell: U.K. Equity Rally Spurred on by Low Bond Yields
To fail once with a bond-buying auction may be regarded as a misfortune; were the Bank of England to fall short a second time, it wouldn’t be so easily dismissed. The BOE couldn’t find enough sellers of long-dated gilts in the first week of its expanded quantitative-easing program, and Tuesday sees the central bank again seeking 1.17 billion pounds ($1.5 billion) of debt due in more than 15 years. While purchases of shorter-maturity bonds drew an abundance of offers, longer-term debt is mostly owned by pension funds and insurers, who, analysts say, are less likely to sell. Stanhope Capital Chief Investment Officer Jonathan Bell discusses with Bloomberg's Manus Cranny on "Countdown."