While the Bank of England Governor Andrew Bailey stated that the intervention in the bond market would end, some officials noted that the intervention would continue. 

Bank of England (BOE) Governor Andrew Bailey told fund managers that the bank’s involvement in the bond market would end this week, triggering a sharp sell-off in sterling and equities. 

Speaking at the Institute of International Finance annual meeting in Washington on Tuesday, Bailey said, “I am calling out to all the funds and companies participating in the program. There are three days left for you to close your positions,” , giving the message that the £65 billion emergency bond purchase program will not be extended until next week. 

Bailey said next week that pension funds would only be able to access financing through the BOE’s short-term repo program announced this week, with the bank not printing money to buy more assets. After Bailey’s statements, the sterling/dollar rate fell below 1.10 for the first time since September 29. The currency was traded at 1.1015 in the morning hours.