–BOE Accepts Offers For All Eight Gilts
LONDON (MNI) – The Bank of England saw cover of just 1.39 at its
over 25 year reverse gilt auction Tuesday, having seen 4.47 cover at
Monday’s 3-to-10 year auction.
Cover in the ultra-long auction is typically low, with banks and
pension funds needing to hold longer dated gilts for capital adequacy
and liability purposes. While Monday’s auction revolved around just two
gilts, at Tuesday’s auction the central bank spread its purchases across
all eight gilts.
Its largest purchases were of the 4.0% 2060 gilt, the longest dated
in the basket, where it accepted offers for stg310 million. At the other
extreme, it bought just stg32 million of the 4.75% 2038 gilt.
–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MMBBE$]
