Following announcement by BoE to reinvest.......>

BOE: Following announcement by BoE to reinvest Stg10.1bln cash flows associated

with the redemption of the Gilt Aug 25 2017 and Gilt Sep 7 2017 gilt held in the

Asset Purchase Facility: 

- Operations of gilt purchases will commence in the week beginning Sep 4.

- The Bank will continue, normally, to conduct three auctions a week: gilts with

a residual maturity of 3-/7 years will be purchased on Mondays; of over 15-years

on Tuesdays; and of 7-/15 years on Wednesday's. 

- The Bank intends to purchase evenly across the three gilt maturity sectors.

The size of auctions will initially be Stg1.125bln for each maturity sector. 

- The Bank does not currently intend to purchase gilts where the Bank holds more

than 70% of the "free float", i.e. the total amount in issue minus government

holdings. The Bank will, however, continue to keep the identity of gilts

eligible for purchase in the APF under review.

- As the DMO has ceased to publish intraday gilt yields, offers into APF gilt

purchase operations will now be allocated based on their attractiveness relative

to market mid yields, as published by Tradeweb, at the close of the auction.