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Gilt Trip

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The Bank of England Buying a Lot of UK Government Bonds

Bank of England said it will buy up more UK government bonds than expected. Pension funds, which had bought a lot of them, are in a sticky situation at the moment. The price of those bonds fell so dramatically after the chancellors mini budget. That left these pension funds,. which hold these bonds in a tight spot. They weren't insolvent but they hadn't lost everyone's money who is relying on them for their pensions. But what it did mean was that indeed they did cash in a hurry and they could only get that cash by effectively selling a load of these bonds  and the price would go down further. It's a vicious circle. So the Bank of England buying

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