LONDON (MNI) – The Bank of England saw cover of 2.07 at its stg1
billion over 15 year reverse gilt auction, up from 1.7 in the
corresponding auction last Tuesday.
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 made stg362.825 billion of
purchases and following today’s auction it has only stg10.175 billion of
purchases 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 entails 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$]
