All financial crises have their peak days, the moment of drama when everything comes to a head. Think of Black Monday – 19 October 1987 – when the bottom fell out of global stock markets, or Black Wednesday – 16 September 1992 – when the pound crashed out of the Exchange Rate Mechanism. With the Bank of England saying that it will cease emergency purchases of gilts tomorrow (although it is reported to have told pension fund managers a different thing in private) could we be facing a Black Friday? Some things to look out for tomorrow morning….
Gilts crash (ie yields rise sharply)?
This afternoon, things have been going in the other direction. Gilts have been perky, as confidence rises that pension funds have succeeded in offloading sufficient gilts, and raising sufficient cash, to keep themselves out of trouble.
With the Bank of England saying that it will cease emergency purchases of gilts tomorrow, could we be facing a Black Friday?
On Wednesday, it was revealed today, the Bank of England purchased £4.4
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