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Bank Of England Capitulates: Restarts QE Due To "Significant Dysfunction" In Bond Market, "Material Risk" To Financial Stability 

https://www.zerohedge.com/markets/bank-england-capitulates-restarts-qe-due-significant-dysfunction-bond-market-material-risk 

BY TYLER DURDEN 
WEDNESDAY, SEP 28, 2022 - 08:22 AM 
Just a few days ago we wrote that "Something Is About To Break" and prompt a capitulation from one or more central banks, which oddly was met with mockery in the comment gallery. Also, a few weeks ago, we said that we are nearing a moment in time when central banks will do QE and rate hikes at the same time. 


Finally, for much of the past year we have said it is only a matter of time before the coming market crash and economic collapse forces central banks everywhere, not just in one or two countries, to pivot as the price of economic collapse and tens of millions unemployed is far, far greater than simply shifting the inflation target from 2% to 3%. 


Resilient earnings could mean 'market is as low as it needs to go' -strategist 

And then, just moment ago, we were once again proven right on all three when - with UK 30Y gilt yields having exploded in recent days above 5% in an exponential move that can only be described as the bond market breaking... 



... the BOE became the first bank to capitulate on its plans to proceed with QT on Wednesday when the central bank restarted QE in a "temporary and targeted" bond buying operation - which will be as "temporary" as "temporary" inflation was - warning of a "material risk to UK financial stability" if the turmoil in the UK government bond market were to continue. It also raised the prospect of a “tightening of financing conditions and a reduction of the flow of credit to the real economy”, but what it really meant is that QT is over before it even started, and QE is back.