The Bank of England’s (BoE) £65bn inoculation fund does not seem to have protected the bond markets against the impact of LizKwasi-22. Indeed the virus seems to be spreading. Yesterday the Bank announced the fund would also be used to purchase high grade corporate bonds and this morning index linked government bonds have been included in the vaccination programme after what the FT called a brutal collapse in their values.

Is there a risk the BoE will be unable to act as market maker of last resort? Will the Chancellor have to bring his statement forward yet again? His credibility is sinking with the values in the bond market.

If gilt values are not stabilising what is happening to the pension’s liability driven investment (LDI) strategies? Is LizKwasi-22 mutating in other parts of the financial system which so far have not displayed any symptoms?