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BoE urged to sell more short-dated gilts to boost market liquidity

Financial Times LogoFinancial Times11h ago

BoE urged to sell more short-dated gilts to boost market liquidity - Financial Times

Quick Summary:

Starting gilt sales from bonds with a one-year maturity “would help . . .functionality and liquidity of the market”, he added.

He said he feared it would get worse if the ruling Labour party increases the rate of capital gains tax at next month’s budget but keeps gilts CGT-exempt, as this could increase demand for short-dated bonds.

The most significant worsening of liquidity has been in gilts with a one to three-year maturity, in part because the BoE built up such a large stockpile of these bonds, according to Moyeen Islam, a Barclays gilts strategist.


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Article Details

Author / Journalist: Mary McDougall

Category: MarketsFinanceInvesting

Markets:

Topics:

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-09-10 @ 03:00:54 (11 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 954 words

Reading Time: 6 minutes read

Sentences: 32 lines

Sentence Length: 30 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 22441747

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About Financial Times

Financial Times Logo

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 5 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 21 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Content Availability: Worldwide

News Language: English

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Publisher ID: #3

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