Possible scenario
BoE Backstop Debate
20% Chance
The gilt move revives debate over whether the Bank of England should adjust quantitative tightening or liquidity facilities. The base case is not full emergency buying, but even verbal guidance from Governor Andrew Bailey could influence near-term market functioning.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Utilities +0.6%
- Finance +0.5%
Portfolio impact
S&P 500+0.4%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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