The UK Debt Management Office is pulling back further from long-dated gilts to meet investor demand for shorter tenors that are less exposed to swings in the bond market, Chief Executive Jessica Pulay said.

The shock from turmoil in French debt has yet to show up in the country’s market for short-term funding, signaling a broad credit crisis is off the cards for now.

Turbulence across Europe’s bonds is sparking debate over the tools policymakers use to keep markets functioning in the event of a broader financial crisis.

There’s a hot money-minting trade in London, fueled by cheap financing doled out by the Bank of England.

UK government bonds gained after the Bank of England left interest rates unchanged and scrapped plans to sell long-dated gilts as part of its quantitative tightening program.

Traders are increasingly diverging from central bankers on the outlook for interest-rate hikes in Europe.

A go-to trade in the UK gilt markets suggests investors are confident Prime Minister Andy Burnham will stick to his pledge to keep government borrowing in check.

Some of the world’s biggest central banks seem happy to let bond markets do their policy work for them.

Only last month, Andrew Bailey again insisted quantitative tightening is here to stay. The Bank of England governor has been adamant the UK central bank needs to keep slashing its bond holdings to clear the decks for the next crisis and take interest-rate risk off its balance sheet.