Bank or England suspend the sale of long -term effects amid the turmoil of the market

The bank of England temporarily suspended the sale of long -term state bonds as part of its quantitative tightening program, following the market pressure to a sharp rise in British mortgage returns (GILL) due to US President Donald Trump’s imposition of Customs Definitions. The British Central Bank announced on Thursday that it will sell short -term debt of 750 million pounds (equivalent to $ 969 million) on April 14, instead of the previously scheduled auction of long -term bonds worth 600 million pounds, “due to the fluctuations of the last market.” A bank spokesman said the decision was made as a ‘precaution’ measure, with the plans to sell long -term effects in the next quarter. A possible change in the quantitative tightening approach, this sudden change in the quantitative tightening program, may indicate a shift in the desire of the bank or England to move forward in selling effects in the vicinity of difficult world markets. Analysts have warned that this decision could pave the way for the entire program to suspend the program, which is the program aimed at reducing the enlarged public budget to more than a decade of quantitative facilitation policy, which was initially used to counteract the effects of the global financial crisis, and later the pandemic of Kofid. Sarah Briden, Deputy Governor of the Bank of England, said in a session of questions and answers later Thursday that the decision is “artistic” and “has nothing to do with monetary policy.” She added: “Given the kind of fluctuations we talked about and see in the world markets, my colleagues in the market department saw that it was wise, as a precaution, which edits the arrangement of our planned sales.” Long -term prints, long -term UK ties, have been subjected to serious pressure after Trump announced of mutual definitions on April 2. The mortgage returns for 30 years increased by about 60 basis points to 5.66% in days, the highest level since 1998, and the long -term term term -effects are most affected compared to their European counterparts. But long -term mortgages scored strong profits on Thursday, after Trump suspended many of his 90 days. The yield on the 30 -year -old bonds still dropped after the Bank of England announced, with about 16 basis points up to 5.42% at 12:30 in London time. However, yields and fluctuations are still at high levels. “It shows that the age of quantitative tightening can be very short if the unhealthy movements continue as we saw in the last sessions,” according to Puja Kumra, the great strategy for interest rates in TD securities. She added that the decision “clearly indicates that we are approaching a stage in which we can see a freezing point of quantitative tightening, especially with regard to long -term tires.” The effects of cash that the bank or England intends to plan to reduce the possession of UK government bonds within 12 months from October 2024 with a value of 100 billion pounds, of which 13 billion pounds by direct sales. The bank previously insisted that the quantitative tightening has a slight impact on the yields of the mortgage. But the sharp height this week in long -term tires brought back bad memories similar to what happened after the mini budget of former Prime Minister Liz Tarch. Some analysts believe that the effect of quantitative tightening on the returns can be far greater than the bank is recognized. Sanjay Raja, the UK chief economist at Deutsche Bank, said that the decision of the bank of England is “a clear response to the movements we have seen in the market, especially long -term effects.” Although it excluded that the Bank of England will complete its sales completely, Raja emphasized that “it will certainly be one of the points it will consider when evaluating the next round of quantitative tightening.”