The Bank of England said it will restart its corporate bond sales following a volatile selloff in
United Kingdom assets over the past few weeks.
The British central bank had halted its bond sales in the wake of a run-on U.K. gilts following
Prime Minister Liz Truss’ poorly timed tax cut plan.
But with the British government reversing course on its proposed tax cuts late last week, the
Bank of England said it will now resume bond sales through auctions starting the week of
October 24.
Active government bond sales will resume on October 31 of this year, said the central bank.
Currently, the Bank of England holds £18.56 billion ($20.9 billion U.S.) of corporate bonds.
Last Friday (October 14), the British central bank ended its emergency bond buying program
that it used to stabilize markets and prevent a fire sale of bonds from spreading through the rest
of the United Kingdom’s financial markets.
The yields on British bonds are up today (October 17) in reaction to the government’s new fiscal
direction.
