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Many Happy Returns
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Is the Bank of England Dumping Its Own Guilt on to the Market?
The bank of england has been the primary buyer for u.k. Government bonds over past few years. Of 300 n 88 billion issued in government bonds by the u.K. Government, 281 billion was bought by the bank of englands. Now we're entering a period of supposedly quantitative tightening from next month where the bank is meant to be reducing the size of its holdings by 80 billion over the next year. That's simply not going to happen. If you see your guilts falling by five % over the course of a week, which are supposedly very safe, there's not a lot of duration risk, you wouldn't expect that. It's a huge shock. And i've
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