Asset Purchase Facility: Gilt Sales – Market Notice 29 September 2022

Market notice

As announced yesterday, the Bank will carry out temporary purchases of long-dated UK government bonds (gilts), which began on 28 September. The purpose of these purchases will be to restore orderly market conditions, specifically in the long-dated gilt market. These purchases will be strictly time limited. Auctions will take place from today until 14 October.

In light of current market conditions, the Bank’s Executive also postponed the beginning of Asset Purchase Facility (APF) gilt sale operations announced on the 22 September Market Notice that were due to commence next week.

The first APF gilt sale operations will now take place on 31 October and proceed thereafter. The schedule for operations for Q4 2022 will be announced in due course.

The MPC’s annual target of an £80bn stock reduction in gilts held in the APF is unaffected and unchanged.

The Bank confirms that there is no change to the planned date of the first Short-Term Repo (STR) operation. The first STR will be conducted on Thursday 6 October 2022 at 10am; please refer to the market notice for further details.


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