LONDON (MNI) – The Bank of England saw cover of 2.71 at its
Stg1 billion over 15 year reverse gilt auction Tuesday, up from the
2.41 cover seen at last week’s corresponding auction.
Cover ratios have tended to be high in this latest tranche of QE
although the BOE saw only 1.94 cover in Monday’s 3 to 7 year auction.
The BOE is currently conducting a round of Stg50 billion of
quantitiative easing, taking the total to Stg375 billion and is on track
to complete this before its November meeting.
As at Sep 6 the BOE’s data shows it had completed Stg350.838
billion and after Monday’s and Tuesday’s auctions the total rise to some
Stg352.8 billion, leaving the central bank with stg22.2 billion to
complete.
The BOE is currently purchasing stg3 billion of gilts a week in
three weekly auctions. Under the BOE’s 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$B$$$,M$$BE$]
