The Bank of England is conducting targeted purchases of long-term government bonds to provide liquidity to LDI funds and buy time for deleveraging, after which bond prices subsequently converged.
The Changchun Intermediate People's Court publicly announced its first-instance verdict on Sun Lijun for accepting bribes, manipulating the securities market, and illegally possessing firearms, sentencing him to death with a two-year reprieve, followed by life imprisonment without reduction.
Rising yields led to margin calls and collateral requirements for pension funds using LDI strategies, forcing funds to sell government bonds for cash, which further pushed up yields.
A sudden change in UK fiscal policy expectations caused 30-year government bond yields to rise by 140 basis points within 4 trading days, triggering intense volatility in the bond market.
The Bank of England later estimated that during the period of government bond volatility in September 2022, the scale of margin calls related to pension fund LDI strategies exceeded 70 billion GBP.
Between September 23 and October 14, LDI funds sold £23 billion in government bonds, while pension schemes sold an additional £14 billion.