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Have the goalposts moved again? (2/2)

BOE
  • Today's operation was set with an upper size limit of GBP5bln again and there has been no official guidance released from the Bank regarding the offers that will/won't be accepted.
  • Note also that today's linker operation will be set with a limit of GBP5bln again too. The Bank announced this morning that it will "not allocate offers for index-linked gilts at real yields below the mid-levels observed, as quoted by Tradeweb, at close of business on 10 October 2022." However, real yields are currently trading below these levels, so linker offers may not see a substantial increase - but if there is demand from pension funds to delver there will likely still be some usage at least.

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