BoE's Breeden says gilt market functioning well amid Iran war volatility

LONDON, March 26 (Reuters) - ​Bank ⁠of England Deputy Governor ​Sarah Breeden said on Thursday Britain's ​gilt ‌market had functioned well during the ⁠recent volatility caused by ⁠the U.S.-Israeli war on ​Iran, with no evidence of forced selling.

Speaking at a housing ​event, ‌Breeden said liability-driven investment (LDI) funds had proved resilient and reforms introduced after the 2022 market turmoil ​triggered by then Prime Minister Liz ‌Truss' "mini-budget" were working.

"There has been a functioning gilt ‌market through a period of volatility, no evidence of force selling, and ​our intelligence on the LDI market suggests ‌that the measures that we put in place after the 'mini-budget' episode ⁠are doing ⁠their job of ensuring ‌resilience of those funds," Breeden said at ​an event ​hosted by the ‌Resolution Foundation think tank.