Extreme Market Volatility Could Cause BOE to Pause Gilt Sales -- Market Talk

Dow Jones05-15

1331 GMT - Excessive volatility in U.K. government bonds could lead the Bank of England to pause gilt sales under its quantitative tightening program, ABN Amro's Bill Diviney says in a note. Yields on U.K. government bonds hit multi-year highs on Friday as political uncertainty and inflation concerns weigh on investor confidence. The BOE could move from active sales of its gilt holdings--which were bought during the era of quantitative easing--to passive roll-off at the review period in September, Diviney says. Ten-year gilt yields surged to 5.170%, a high last reached in 2008, Tradeweb data show. U.K. 30-year gilt yields climbed to 5.852%, a 28-year high, according to LSEG data. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

May 15, 2026 09:31 ET (13:31 GMT)

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