UK Gilts Show Signs of Calm: Markets Live

The transcript discusses the impact of a chancellor's statement on bond markets, highlighting the volatility and liquidity issues in the gilt market. It explores potential responses from central banks like the ECB and the Fed, considering the implications of rising interest rates and market leverage. The discussion also touches on financial stability risks and the need for central banks to address liquidity concerns.

What was the initial reaction of bond markets to the chancellor's statement?

• Increased volatility

• No reaction

• Sigh of relief

• Panic selling

How might restored liquidity in the gilt market affect other central banks?

• It would have no effect on central banks.

• It would lead to a financial crisis.

• It could lead to more rapid rate hikes.

• It would cause central banks to lower rates.

What concern did Janet Yellen express regarding the treasury market?

• Stock market crash

• Liquidity issues

• High inflation

• Currency devaluation

What is a key risk for central banks when interest rates rise sharply?

• Financial instability

• Decreased unemployment

• Increased inflation

• Economic growth

Which market has become more stressed due to recent sanctions?

• Pound market

• Euro market

• Dollar market

• Yen market