Free Trial
USDCAD TECHS

Heading South

AUDUSD TECHS

Northbound

EURJPY TECHS

Breaches Key Short-Term Support

US TSYS

Late SOFR/Treasury Option Trade

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Confirms Will Continue Buying Ops, Studying "Patterns Of Demand"

BOE

The BoE has issued a market notice confirming it will continue to conduct long-dated Gilt purchase operations through the previously specified date of Oct 14.

  • Though following today's very low takeup (GBP22mln of GBP5bln available), the Bank reminds that the operations are designed to "act as a backstop".
  • As we noted earlier asking why there was such a low takeup, there is no detail on the offer prices that were rejected, just those submitted. The Bank reminds that it "reserves the right to set a maximum price / minimum yield that will be applied to auctions. These reserve prices / yields are reviewed ahead of each auction to ensure consistency with the backstop nature of the scheme."
  • Additionally, "the Bank is studying patterns of demand and will continue to use reserve pricing in order to ensure the backstop objective of the tool is delivered. In addition, the Bank stands ready to adjust any of the other parameters of the auction in order to secure that objective. Finally, from Tuesday 4 October, the Bank is asking GEMMs to identify offers made on behalf of themselves or clients."
  • Slightly bearish reaction in Gilt prices to the announcement, though yields remain much higher than they began today's operation (30Y last 3.89%, up 7bp on the session, though up nearly 35bp from pre-op).
215 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The BoE has issued a market notice confirming it will continue to conduct long-dated Gilt purchase operations through the previously specified date of Oct 14.

  • Though following today's very low takeup (GBP22mln of GBP5bln available), the Bank reminds that the operations are designed to "act as a backstop".
  • As we noted earlier asking why there was such a low takeup, there is no detail on the offer prices that were rejected, just those submitted. The Bank reminds that it "reserves the right to set a maximum price / minimum yield that will be applied to auctions. These reserve prices / yields are reviewed ahead of each auction to ensure consistency with the backstop nature of the scheme."
  • Additionally, "the Bank is studying patterns of demand and will continue to use reserve pricing in order to ensure the backstop objective of the tool is delivered. In addition, the Bank stands ready to adjust any of the other parameters of the auction in order to secure that objective. Finally, from Tuesday 4 October, the Bank is asking GEMMs to identify offers made on behalf of themselves or clients."
  • Slightly bearish reaction in Gilt prices to the announcement, though yields remain much higher than they began today's operation (30Y last 3.89%, up 7bp on the session, though up nearly 35bp from pre-op).