Asset Purchase Facility: Gilt Sales – Market Notice 22 March 2024

At its September 2023 meeting, the MPC voted to reduce the stock of gilts held in the APF for monetary policy purposes by £100 billion over the period from October 2023 to September 2024, to a total of £658 billion.

The Bank set out in the consolidated APF gilt sales Market Notice published on 1 September 2022 that it would publish a quarterly schedule for the sales of gilts held in the APF for monetary policy purposes. The details and schedule for the Q2 2024 sales of such gilts are set out in this Market Notice which covers the period from 8 April 2024 to the week commencing 24 June 2024.

As set out in the December 2023 Market Notice, the Bank will set a schedule of auctions in order to continue to reduce the APF as evenly as possible across maturity sectors, measured in initial proceeds terms. These sectors are defined as gilts with a residual maturity of between: 3-7 years (short), 7-20 years (medium) and over 20 years (long).

Accordingly, in Q2 2024, the Bank will sell short maturity sector bonds across four auctions of £800 million, medium maturity sector bonds across four auctions of £750 million, and long maturity sector bonds across three auctions of £600 million. Further details are outlined in the table below.

The Bank will continue to monitor the impact of its gilt sales programme on market conditions, and reserves the right to amend its schedule, including the gilts to be sold and the size of its auctions, or any other aspect of its approach at its sole discretion.

Other than as amended in this Market Notice, the detailed operational parameters and participation requirements set out previously will apply to these gilt sales.

The Bank expects to announce the sales schedule for Q3 2024 at 4.30pm on 21 June 2024.

Table: APF gilt sales auction calendar – April to June 2024

 Auction date

 Maturity sector

Auction size

Monday 8 April

Short

£800mn

Monday 15 April

Long

£600mn

Monday 22 April

Short

£800mn

Monday 29 April

Medium

£750mn

Monday 13 May

Short

£800mn

Monday 20 May

Medium

£750mn

Thursday 30 May

Long

£600mn

Monday 3 June

Medium

£750mn

Monday 10 June

Short

£800mn

Monday 17 June

Long

£600mn

Monday 24 June

Medium

£750mn

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