Bond yields rose on Tuesday started to rise again after the Bank of England disputed a report it will further delay its quantitative tightening program.
The yield on the 30-year gilt TMBMKGB-30Y, 4.406%, an important security to judge the health of the country’s embattled pension fund system, rose 10 basis points to 4.47%. The yield on the 10-year gilt TMBMKGB-10Y, 4.043% rose 11 basis points to 4.08%.
The 30-year gilt yield plunged 48 basis points after new Chancellor of the Exchequer Jeremy Hunt withdrew nearly all of the tax cuts planned by U.K. Prime Minister Liz Truss, and also reduced the duration of its energy price support.
The Bank of England is set to further delay its plan to sell government bonds, the Financial Times reported, though the report said it may stick with a plan not to reinvest maturing securities.
The central bank, however, called that report “inaccurate,” without saying in what way the report was not accurate.
The BoE had first delayed the gilt sale program when it intervened to stop a brewing pension fund crisis.
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