Markets recoil as the Bank of England ends hopes for emergency program extension

There goes everything.

The grind back for risk assets has quickly come unwound after Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term Governor Andrew Bailey said the emergency BOE program to provide liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term to the long end of the gilt market will end Friday as planned.

Many market participants were hoping for an extension at least until month end.

UK 30-years have fallen in 7 straight days and are in danger of cracking 5% again this week. Tomorrow's trade will be particularly interesting after this comment.

Bailey slapped the door shut on extension hopes saying his message is "you have three days left to get this done" and "we will be out by the end of the week."

Cable has sunk to 1.1016 from 1.1120 before he spoke. There's broad USD strength and equities are rapidly tilting lower, with the Nasdaq now down 1.5%.