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2025-09-18 21:32:54
[The Bank of England's QT deceleration is less than expected, and the 30-year government bond yield jumps] ⑴ The Bank of England announced a plan to adjust the pace of quantitative tightening on Thursday, planning to reduce its holdings of government bonds by 70 billion pounds in the next 12 months starting from October, which is a slowdown from the 100 billion pounds of reduction in the past year. ⑵ The QT deceleration this time was smaller than market expectations. Many institutions, including TD Securities, had previously expected the scale of reduction to fall to the range of 60-65 billion pounds. ⑶ The Bank of England made it clear that it would tend to sell more medium- and short-term government bonds and reduce the sales proportion of long-term government bonds to optimize the reduction structure. ⑷ After the policy was announced, the yield on the UK 30-year government bond rose. According to Tradeweb data, the yield rose from 5.434% before the announcement to 5.496%, a significant increase. ⑸ This QT policy adjustment shows that the Bank of England maintains a relatively hawkish stance on controlling the pace of balance sheet contraction, which exceeded the expectations of some market participants.
