LONDON (MNI) – The Bank of England saw cover of 1.7 at its stg1
billion over 15 year reverse gilt auction Tuesday, with cover again
relatively weak at the long dated auction, having dropped to just 1.55
at the corresponding auction on Sep 25.
The BOE’s Monetary Policy Committee has sanctioned stg375 billion
of asset purchases through its quantitative easing scheme. As at the
close of business Thursday the BOE had completed stg359.75 billion of
purchases and with the first two of this week’s auction completed it now
has only stg13.25 billion of purchases to complete to hit the target.
The BOE is currently purchasing stg3 billion of gilts a week in
three weekly auctions. At this rate the BOE is on track to hit the
Stg375 billion target in the October 31 auction.
This means that there will be no auctions in the week starting
November 5 ahead of the MPC’s November 7 and 8 policy meeting.
The majority view among analysts is that the committee will then
sanction a further stg50 billion tranche QE at that meeting.
Under the BOE’s current programme gilts with a residual maturity of
3-7 years are being purchased on Mondays, over 15 years on Tuesdays and
7-15 years on Wednesdays.
-London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$$BE$]
