Bank of England reverses course and buys bonds for Quantitative Easing

BOE has now reversed course and started buying bonds to prop up the UK economy and stock market. This is what we would call Quantitative Easing, and is the opposite of the Fed’s current tightening policy. Yields on long-dated UK bonds are falling as a result. Any opinions on whether this will impact US bond yields?

The NYSE had a 90% up volume day today. Could the optimism be related to the BOE’s actions?

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If nothing else, this is going to be interesting. I don’t see the US Fed reversing their tightening policy any time soon.

Back in the day, I remember the Pound fetching 4 greenbacks. Are we going to see 1:1 soon? This move would push things in that direction.

–Peter

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Anyone following this topic might want to see my post … hope to god this doesn’t throw up an error… here:

Time to think quickly? (UK, MBS, junk bonds, gilts, panic selling, credit freeze, banks...)

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