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Bank of England bond sales creating a ‘selling gold at the bottom’ moment, strategist says

September 11, 2023


The Bank of England’s rapid pace of bond sales is creating a “selling gold at the bottom” moment for investors, according to Christopher Mahon, head of dynamic real return at Columbia Threadneedle.

In the aftermath of the 2008 financial crisis, the central bank spent 13 years buying up £895 billion ($1.12 trillion) of U.K. government bonds — known as gilts — while interest rates were historically low.

Now, despite the fact that the value of gilts has fallen dramatically since then, the central bank is unwinding those holdings, and fast.

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