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Bank of England buying bonds. The Bank of England includes inflationary government bonds in its bond purchase list

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bank of england buying bonds

Bank of England news: Bank of England includes inflation-linked government bonds in its bond purchase list© Reuters. The Bank of England included inflation-linked government bonds into its bond purchase list The Bank of England expanded its emergency bond-buying program to include inflation-linked government debt securities, the central bank said in a statement.

Bank of England buying inflation-linked bonds in the amount of up to 5 billion pounds per day. On the eve of the Bank of England announced the launch of the Temporary Expanded Collateral Repo Facility (TECRF) to solve the liquidity problems of the so-called LDI-funds (liability-driven investment), used to hedge risks by pension funds.

Pension funds are major players on the market for government bonds, including inflation securities. Some 72% of U.K. private pension funds’ assets at the end of March 2021 were in bonds, including 47% in inflation-linked government bonds, according to official data.

The British Central Bank announced the start of a temporary government bond-buying program on September 28 after a spike in volatility following the presentation of the U.K. government’s plan for massive tax cuts. The program is expected to end on Friday, October 14.

“Earlier this week we saw a serious revaluation of British government debt again, particularly in inflation bonds. The functional disruption in this market and the prospect of a self-reinforcing ‘term sell-off’ dynamic poses a significant risk to UK financial stability,” the Central Bank said in a statement.

The yield on inflation-linked 10-year UK government bonds jumped 64 basis points the previous day, a record pace since 1992, according to Bloomberg.

Earlier we reported that European stock markets ended in a decline for the second consecutive session.

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Crypto Markets Rally: Bitcoin and Ethereum Lead the Charge, Coinbase and Marathon Digital Shares Rise

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Crypto Markets Rally: Bitcoin and Ethereum Lead the Charge, Coinbase and Marathon Digital Shares Rise
© Reuters

The major players in the cryptocurrency market, and , saw significant gains on Monday, with Bitcoin surging to $28,569.40 and Ethereum rallying to $1,727.98. Other cryptocurrencies including , which reached $24.01, and , which rallied to 27 cents, also experienced notable increases.

In the wake of this crypto rally, stocks related to the sector also saw substantial movements. Coinbase (NASDAQ:) Global Inc.’s shares rose to $78.46 and Marathon Digital Holdings Inc.’s shares jumped to $9.62 on Monday. Meanwhile, the Bitwise Crypto Industry Innovators ETF increased to $7.03 and the Grayscale Bitcoin Trust rallied to $20.12.

However, not all companies in the crypto-related sector experienced gains. Overstock.com (NASDAQ:)’s shares dropped to $15.50 and Tesla (NASDAQ:) Inc., which has previously invested heavily in Bitcoin, saw its shares decrease to $247.66.

In addition to the market leaders Bitcoin and Ethereum, other cryptocurrencies like , , , , and Polygon also moved notably on Monday. NVIDIA Corp (NASDAQ:)., a leading graphics processing unit (GPU) manufacturer that is widely used in cryptocurrency mining operations, also benefited from this uptick in the crypto market with its shares climbing to $447.66.

Overall, Monday marked a significant day for cryptocurrency markets as well as for companies involved in the sector. The reasons behind these movements are varied and complex, reflecting the multifaceted nature of this rapidly evolving industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Fed’s Powell: Economy still working through the impact of the pandemic

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Fed's Powell: Economy still working through the impact of the pandemic
© Reuters. FILE PHOTO: U.S. Federal Reserve Chair Jerome Powell holds a press conference in Washington, U.S, September 20, 2023. REUTERS/Evelyn Hockstein/File Photo

By Howard Schneider

YORK, Pa. (Reuters) – The U.S. economy is still dealing with the aftermath of the COVID-19 pandemic, Federal Reserve chair Jerome Powell said during a meeting with community and business leaders in York, Pennsylvania.

“We are still coming through the other side of the pandemic,” Powell said, noting labor shortages in healthcare, ongoing difficulties with access to child care, and other issues heightened by the health crisis. He did not comment on current monetary policy or the economic outlook in brief opening remarks.

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Indian Equity Markets End September on a High Note

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Indian Equity Markets End September on a High Note
© Reuters.

Indian equity markets concluded the month of September on a positive note, with significant gains recorded on Friday. The rose by 320.09 points to close at 65,828.41, while the NSE’s Nifty50 advanced by 114.75 points to settle at 19,638.30. The BSE midcap index also registered gains, reflecting an overall uptick in the market.

These gains were primarily driven by positive global cues and investments in the metal, oil & gas, and power sectors. However, the IT sector showed signs of underperformance as indicated by the Nifty IT index.

Market analysts Amol Athawale and Vinod Nair offered insights into market trends and challenges. They noted encouraging GDP data from Britain that further reinforced market optimism.

In broader markets, Authum Investment & Infrastructure hit an upper circuit of 20 percent. Yet, not all stocks performed well; Shreyas Shipping and Finolex Cables underperformed on Friday.

Among other stocks, Apollo Hospital Enterprises and Sun Pharmaceuticals saw gains while Tata Consultancy Services (NS:) lagged behind. The volatility index, India , also saw a considerable drop, indicating a decrease in investor fear or uncertainty about future market movements.

This positive performance of the Indian equity markets comes even as they face challenges including the underperformance of certain sectors such as IT. Investors will likely continue to monitor these developments closely as they navigate their investment strategies for October.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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