The brazen talk from BoE's Bailey yesterday afternoon, stating with conviction that the "temporary" bond-buying program would in-fact end this Friday on original deadline and risking an upgraded 'left-tail' rates calamity through accelerated asset liquidations in a tight window, was not simply an 'avoidance of moral hazard' exercise from the BoE head - where the central bank would again be 'on the hook' to backstop Funds needing to get their liquidity / cash 'houses in order' and appropriately deleveraged in short-order, versus the BoE sole-priority on continuing their fight against inflation as lone mandate.

Instead, writes Nomura's Charlie McElligott this morning,  the comments were (admittedly dangerous) gamesmanship from the BoE head back to the Truss' government, a high risk "game of chicken" which is saying, "I'll let markets dictate to you whether you and your budget survive" - and effectively saying that the blood will be on the Government's hands if there is a pension disaster which will then require a later 'bail-out'.

The Nomura strategist's view of this 3-D Chess game being played by Bailey to force the death of the Truss / Kwarteng budget is somewhat confirmed by the price action in UK bonds and cable this morning - simply put, it's not a bloodbath...

Gilt yields are up modestly...