7 May | Other

Volatility in British market adds to expectations of Bank of England halting bond sales

Volatility in British market adds to expectations of Bank of England halting bond sales

Strategists at Bank of America and BNP Paribas are bullish on UK long-maturity gilts, expecting the Bank of England to halt debt sales from October. That view was reinforced by the central bank's unusual decision to postpone an auction of securities in March amid turmoil in global markets.

The bond sales are part of the Bank of England's efforts to unwind its massive economic stimulus after the financial crisis and the pandemic. 

Agne Stengeryte and other Bank of America strategists said the UK central bank is closely monitoring the situation and is likely to register a strong impact of its quantitative tightening program on financial market conditions.

The country's 30-year debt has been hit hardest by political and economic turmoil of recent years as demand from traditional investors, including pension funds, has waned. Consequently, the UK Debt Management Office has announced a historic shift toward less long-term debt this year.

Anton Volkov MarketCheese
Period: 16.05.2025 Expectation: 600 pips
AUDUSD will resume growth to 0.64900
Today at 10:59 AM 41
Period: 24.05.2025 Expectation: 4240 pips
USDJPY could extend its rally toward target level of 150.30
Today at 08:56 AM 39
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 23.05.2025 Expectation: 45000 pips
ETHUSD pulls back ahead of new growth wave
Today at 08:54 AM 38
Period: 25.05.2025 Expectation: 156 pips
Selling natural gas with target of 3,300 amid lower demand due to mild weather
Today at 06:43 AM 28
Period: 15.05.2025 Expectation: 1150 pips
EURUSD is expected to decline to 1.10800
Yesterday at 11:04 AM 72
Period: 22.05.2025 Expectation: 2720 pips
USDCAD pair aims for recovery after local decline
Yesterday at 08:06 AM 44
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Go to forecasts