BoE's Bailey says gilt market still looking abnormal

Governor of the Bank of England Andrew Bailey attends the Monetary Policy Report News Conference at The Bank of England, in London, Britain November 3, 2022. REUTERS/Toby Melville/Pool/File Photo

LONDON, Nov 29 (Reuters) - Bank of England Governor Andrew Bailey said on Tuesday that conditions in Britain's government bond market had not yet returned to normal.

Late September saw the heaviest selling of gilts since modern records began, triggered by former Prime Minister Liz Truss's economic agenda and reinforced by the funding structure of the pensions industry.

"We've obviously had a period of severe illiquidity in the gilt market, indeed it's not back to normal at the moment," Bailey told the Economic Affairs Committee of the House of Lords.

Reporting by UK bureau, writing by Andy Bruce, editing by David Milliken

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