# PIMCO CIO says UK market chaos not systemic but will have global impact
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: PIMCO Chief Warns of British Pound Collapse Impact on Global
Meta Description: PIMCO's Dan Ivascyn dismisses systemic risk from British pound collapse at CNBC Delivering Alpha, highlighting global market impact and Bank of
URL: https://financedigest.com/pimco-cio-says-uk-market-chaos-not-systemic-but-will-have-global-impacthtml

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(Corrects name of conference to Delivering Alpha in first paragraph)

WASHINGTON (Reuters) – The collapse of the British pound and subsequent sell off in the country’s bond market in recent days do not pose systemic risks but will affect global markets, PIMCO chief investment officer Dan Ivascyn told the CNBC Delivering Alpha conference in New York.

Ivascyn added that the Bank of England’s decision overnight to prop up the bond market was a short-term fix that would not address waning investor confidence in British policy.

Since Friday’s UK mini-budget budget flagged 45 billion pounds ($48 billion) [worth of unfunded tax](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") cuts, sterling has lost 6% of its value and hit record lows while British bond prices soared. The chaos in a major developed economy adds to unease already generated by sharp interest [rate rises](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") from the United States and elsewhere.

(The story corrects name of conference to Delivering Alpha in the first paragraph)

(Reporting by Davide Barbuscia; writing by Michelle price)


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