LONDON (MNI) – The Bank of England’s second reverse auction under
its second wave of quantitative easing, at the ultra long end, saw
markedly weaker demand than at Monday’s 3-10 year auction.
The cover ratio for Tuesday’s 25 year plus auction was 1.97,
whereas it was 3.91 in the 3-10 year auction.
The bulk of the gilt purchases centred on three gilts: the 4.25%
2040; the 3.75% 2052 and the longest dated gilt, the 4.0% 2060.
The BOE bought stg627 million of the 4.25% 2040, stg528 million of
the 4.0% 2060 and stg290 million of the 3.75% of the 2052.
In all, the BOE bought just a fraction under the full stg1.7
billion amount offered, with the 4.25% 2040, the 4.0% 2060 and the 3.75%
2052 collectively making up stg1.445 billion of this, or 85%.
The purchases of other gilts in the auction were, therefore, for
very modest amounts.
–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MMBBE$]
