UK Gains Over 5 Trillion Won from Government Bond Sales

Purchased for ?19.3 billion to resolve Trussbal crisis
Sold for ?22.8 billion... ?3.5 billion profit

On the 12th (local time), Bloomberg reported that the Bank of England made a profit of about 5 trillion won from government bonds purchased to resolve the financial market turmoil caused by the tax cut plan of former Prime Minister Liz Truss last year.
[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] On the 12th (local time), Bloomberg reported that the Bank of England made a profit of about 5 trillion won from government bonds it purchased to resolve the financial market turmoil caused by the tax cut plan of then-Prime Minister Liz Truss last year.

According to the report, the Bank of England (BOE) began selling the long-term government bonds worth ?19.3 billion (approximately 29.2 trillion won) that it bought in October last year through emergency bond purchases, and completed the sale on this day. The sale amount of these bonds was ?22.8 billion.

Accordingly, Bloomberg stated that the profit BOE earned from trading these bonds was ?3.5 billion (about 5.3 trillion won), with a yield of 18%.

After Prime Minister Truss announced the tax cut plan in September, UK government bond yields surged and the pound plummeted, causing financial market turmoil. As concerns about pension fund insolvency arose, the BOE purchased a large amount of government bonds to prevent market disruption.

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