–Adds Detail On the Rejection Of All Offers for the 8.75% 2017 Gilt
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 was a first
for the central bank.
Price movements ahead of the auction showed the 8.75% 2017 was an
outlier, moving up to an afternoon high of 127.84 before dropping
sharply to 127.40 just ahead of the announcement of the auction results.
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$,MMBBE$]
