Asset purchase facility: gilt sales – Market notice September 1, 2023

To his September 2022 meeting, the MPC voted to reduce the stock of purchased gilts held in the APF by £80 billion over the next twelve months. The third quarter of 2023 is the final quarter of the period to which the MPC’s £80 billion target applies. Consequently, the Bank noted in the Market notice for APF walleye sales published on June 23, 2023 that some adjustments to the third quarter sales program may be necessary in order to achieve the target.

Due to changes in walleye prices and the distribution of sales achieved so far in the third quarter, an adjustment to the size of the quarter’s remaining auctions is necessary. As a result, for the final three auctions of the quarter, the planned size will be reduced to £650 million from £790 million for each of the short, medium and long term auctions. The dates of the various auctions remain unchanged and are specified in the table below.

Except for the modifications made in this procurement notice, the detailed operational parameters and participation requirements set out previously (including in the Consolidated sales of APF gilts Market notice published September 1, 2022) will apply to these walleye sales.

The Bank will continue to monitor the impact of its gilt sales program on market conditions and reserves the right to change its timing, including the gilts to be sold and the size of its auctions, or any other aspect of its approach. , at its sole discretion. .

The Bank intends to communicate any future sales schedule for the fourth quarter of 2023 or beyond following the MPC’s annual review of the reduction in stock of purchased gilts over the next twelve months, which will be announced at of the MPC meeting of September 21, 2023.

Table: APF Walleye Sales Auction Calendar – September 2023

Auction date Maturity sector Auction size
Monday September 11 Short £650 million
Monday September 18 AVERAGE £650 million
Monday September 25 Long £650 million

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