LONDON (MNI) – The Bank of England’s first reverse auction under
its second wave of quantitative easing saw very strong demand, with the
cover ratio coming in at 3.91 in the 3-10 year auction.
The BOE said it rejected all offers for the 8.75% 2017 gilt because
of “significant changes in its yield in the run up to the auction.”
The explanation of yield changes for rejecting offers appears to be
a first for the central bank.
The BOE received total offers of stg6.63986 billion for the gilts
on offer and accepted stg1.69993 billion – with the auction having been
set for stg1.7 billion worth of 3-10 year gilts.
–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MMBBE$]
