LONDON (MNI) – The Bank of England saw cover of 4.27 at its stg1
billion 7-15 year reverse gilt auction Wednesday, with again much
stronger cover for this maturity range after the cover at
Tuesday’s long dated auction came in at just 1.7.
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 stg359.75 billion of
purchases and with this week’s three auction now completed it has only
stg12.25 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 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$]
