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topicnews · September 5, 2024

BoE and bond vigilantes “not responsible for 2022 government bond crisis”

BoE and bond vigilantes “not responsible for 2022 government bond crisis”


















































BoE and bond vigilantes “not responsible for 2022 government bond crisis” – Central Bank






Former bank official refutes former prime minister’s claim that LDIs were the main cause of the rise in yields


Liz Truss

The rise in UK government bond yields that followed the 2022 ‘mini budget’ was not the result of a conspiracy by the Bank of England (BoE) or bond market vigilantes, says a former BoE official Central banking.

Last month, former Prime Minister Liz Truss cited a working paper on liquidity after solvency hedging (LASH) published by BoE economists in May, which found that institutions with larger LASH exposures sold significantly more government bonds during the liability period.

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