AdvancedMultiple choice
In late September 2022 long-dated UK gilt yields rose so fast that the Bank of England intervened. What made the selloff self-reinforcing?
- ALiability-driven pension funds met collateral calls on leveraged gilt positions by selling gilts
- BForeign central banks sold their entire gilt reserves at the same moment
- CThe UK Treasury stopped paying coupons on long-dated gilts for a week
- DBanks were required to sell gilts because of a new capital rule that took effect that week
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