Bank of England gilt plan could compound risks of market meltdown

Bank of England gilt plan could compound risks of market meltdown

Bank of England plans to reduce the bond market’s vulnerability to a Liz Truss-style crash would fail to improve financial stability and could make stress points worse, according to gilt traders and hedge funds polled by the Bank. Responses to the central bank’s plans to overhaul its regulation of the gilt repo market showed market participants to be generally supportive of officials’ push to improve the bond market’s resilience, but warned two …