, Columnist
Gilt Market Carnage Prompts Risky Bank of England U-Turn
Traders may demand more after central bankers step in to drive down bond yields.
Andrew Bailey, governor of the Bank of England.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Life comes at you fast, particularly if you’re a central banker trying to keep calm and carry on in these febrile times.
Just two days after ignoring calls to intervene in the markets after Friday’s government tax giveaway trashed sterling assets, the Bank of England has decided moves in the gilt market have become sufficiently violent to warrant action. It’s a capitulation that could backfire badly.