The Bank of England's latest bond-buying programme has hit a wall on its second day of operations as investors refuse to sell their long-dated government bonds.
Pension funds and insurance companies - which tend to invest in long-dated UK bonds to match their liabilities - rejected the central bank's attempt to buy £1.2bn of long-dated gilts despite receiving above market level offers. Luke Hickmore, manager of the £1.8bn Aberdeen Corporate Bond fund told Bloomberg: "Lots of people are bidding us for bonds. Mark Carney (pictured) is now bidding me for bonds and he still cannot have them. He was trying to buy 15-year plus bonds in the gilt market. "That is a really difficult area where people are hunting down what yield is left. You have to ex...
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