LONDON (MNI) – Cover at the Bank of England’s 10-25 year reverse
Gilt auction Wednesday came in at a robust 2.72, with these asset
purchases completing the Stg75 billion round of quantitative easing
ahead of the BOE Monetary Policy Committee’s policy setting meeting next
week.

When the Stg75 billion second wave of QE was launched last October,
the MPC said it would take until early February to complete. In the
event, all the auctions under QE2 have been covered although cover at
times has been thin, particularly in the ultra-long (over 25 year)
auctions. Tuesday’s over 25 year one seeing just 1.33 cover.

Analysts expect the MPC to sanction further QE at next week’s
meeting, although the January minutes showed clear differences of
opinion among members.

The BOE bought Gilts at all seven maturities in the auction.

–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com

[TOPICS: M$B$$$,M$$BE$]