Central banks are already intervening

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SOL
Power VS Force
Power VS Force
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Joined: Sat Sep 26, 2020 7:32 am

Central banks are already intervening

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LONDON, Sept 28 (Reuters) - The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilise financial markets, after a slump in British gilt prices since a government fiscal statement on Friday.

Citing potential risks to UK financial stability, the BoE also said it would delay the start of a programme to sell down its 838 billion pounds ($891 billion) of government bond holdings, which had been due to begin next week.

It added that it remained committed to an 80 billion pound reduction over the next 12 months in holdings of bonds bought under its quantitative easing programme following the global financial crisis and during the COVID-19 pandemic.

British 30-year bond yields hit their highest since 2002 on Wednesday, before the BoE announcement, and traders complained it was becoming increasingly hard to buy and sell bonds as no one wanted the risk of holding such a volatile asset.
https://finance.yahoo.com/news/1-bank-e ... 16203.html

They will continue to intervene, there will be no unwinding, and eventually, our Fed will follow. What we have is a massive currency war going on. Ukraine and Russia are just a side show. The US is doing everything in its power to push the USD as high as it can, just in case come winter Europe wakes up and refuses to be their dog. In that case, the Fed will have a lot more room to flood the markets with money while still maintaining the illusory value of the dollar.
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