Charlie McElligott of Nomura not holding back today.
Quick take—idiosyncratic fiscal largesse in midst of an already unstable monpol tightening creates a market accident which leads to an asymmetrically WILD policy response from the BoE…which creates more instability.
Just a massive change here in the past few hours on a STUNNING policy move from the BoE to arrest the Gilt / Sterling Vol by an announcement of long-end GILT BUYING mkt operations, coming at a time where they are supposed to be tightening policy and shrinking the balance sheet to fight inflation—but tactically, is causing an enormous short-cover in markets which is lifting all assets off earlier panic lows.
