The UK is going short

Investment Analysis Clubs Macro Economic Trends and Risks
1

The UK is following the USA’s lead in concentrating on short term bonds/gilts. This may help short term but isn’t this type of policy a risky one by having trillions at the risk of short term market movements:

Britain’s borrowing costs fell by the most since May after the Bank of England confirmed it would end sales of long-dated government debt.

https://archive.is/LV0QI

2

Back in the zero-interest days the government was selling lots of short-term instruments rather the long stuff. The explanation was that that’s where the demand was. Maybe not that many are interested in buying 30-year gilts…

DB2

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