Bank of England Pauses Gilt Auctions Pending Review of Sales Model
The Bank of England has suspended gilt auctions while it explores selling £146 billion in government bonds directly to the Treasury.
By Orion Desk
The Bank of England is reviewing a new mechanism to unwind its Asset Purchase Facility by selling £146 billion of gilts maturing between 2035 and 2049 directly to the government. This potential strategy aims to maintain the previously established pace of £20 billion in annual reductions while ensuring the process aligns with the Debt Management Office's financing remit.
While this review is underway, the Bank has paused all existing gilt auctions. Market participants will monitor further guidance expected by April 2027, as the outcome of this evaluation will dictate the operational method used to shrink the central bank's balance sheet over the coming years.
Originally published by Bank of England
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