Sterling: Rise in Yields on 30-year Gilts

Viscount Thurso Excerpts

Tuesday 14th January 2025 Lords Chamber

[Lord Livermore (Lab)]

If I may, I will correct the noble Baroness: UK gilt markets continue to function in an orderly way. Underlying demand for the UK’s debt remains strong, with a generally well-diversified investor base. The Debt Management Office’s gilt sales operations continue to see strong demand, with the latest auction, held earlier today, receiving three times as many bids as the amount on offer. The noble Baroness mentioned what we inherited, so she will be very aware that we inherited a £22 billion black hole in the public finances. We have taken very difficult decisions to deal with that, every single one of which has been opposed by her party.

[Viscount Thurso (LD)]

My Lords, what consideration have the Government given to the Bank of England’s current policy of fairly aggressive quantitative tightening? Do they feel that this is helpful in the current market? Should the Chancellor consider issuing a direction to the Bank on this issue?

[Lord Livermore (Lab)]

The Government support the Bank of England in the actions that it takes.