LONDON (MNI) – Cover at the Bank of England’s over 15 year reverse
stg1.5 billion Gilt auction Tuesday came in at 3.04, continuing the
trend of strong cover ratios in the second wave of quantitative easing
following the change in the Gilt purchase baskets.
The over 15 year basket, which replaced the over 25 year one, has
eased the problem the BOE faced from banks and pension funds holding
onto ultra long Gilts.
Tuesday’s auction was dominated by the 3.75% 2052 Gilt, with the
central bank accepting offers for stg575.8 million have received offers
for stg810.9 million.
–London newsroom 0044 20 7862 7491; email:
drobinson@marketnews.com
[TOPICS: M$$BE$]
