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The Bank of England said Thursday that it was postponing a sale of long-term government bonds until at least July, citing ‘recent market volatility’. The central bank did not elaborate, but financial markets worldwide have seen chaotic swings in recent days as investors react to President Donald Trump’s ever-changing US tariffs against trading partners around the world. Heavy selling of 30-year UK government bonds saw their yield representing the cost nations have to pay to borrow money hit their highest level since 1998 on Wednesday, at over 5.6%. US Treasures also saw massive selling in response to Trump’s tariff plans, which have sparked fears of a trade war that could hammer economic growth worldwide. Instead of selling £600 million of long-term bonds as planned next Monday, the BoE will sell £750 million of short-term paper. Long-term bonds will be sold in ‘the following quarter’, the bank said in a statement, adding that it ‘reserves the right to amend its schedule, including the gilts to be sold and the size of its auctions’. ‘Sales are being conducted so as not to disrupt the functioning of financial markets, and only in appropriate market conditions,’ it said. Government bonds are normally considered among the safest investments, but rising yields signals that buyers are less confident in the ability of governments to pay them back. source: AFP Copyright 2025 Alliance News Ltd. All Rights Reserved.
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