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It looks like the BOE won't pay a premium at the long-dated gilt operations

BOE
  • Further MNI analysis comparing the highest AAP price paid by the BOE and the mid-prices of the gilts shows that the BOE will pay only marginally over the mid-price (equivalent to a reasonable bid/ask spread, but won't pay any more than this.
  • Below we have compared the mid-prices of all the 20+ year gilts eligible for purchase at today's operation and as can be seen, the BOE is paying only marginally higher than pre-auction mids.
Long GiltsBOE buysHighest AAPMid-priceBOE rejectsPrev buys
4.50% Dec-42GBP125.9m105.357105.227GBP107.1mGBP10.7m
3.25% Jan-44GBP370.5m88.67788.573GBP89.6mGBP49.1m
3.50% Jan-45GBP37.1m92.14092.014GBP51.1mGBP0.0m
0.875% Jan-46GBP0.0m61.453GBP0.0mGBP0.0m
4.25% Dec-46GBP0.0m103.326GBP52.5mGBP20.9m
1.50% Jul-47GBP463.8m61.55761.453GBP0.0mGBP0.0m
1.75% Jan-49GBP0.0m64.534GBP0.0mGBP0.0m
4.25% Dec-49GBP18.0m104.837104.667GBP23.4mGBP15.8m
1.25% Jul-51GBP115.1m54.58754.488GBP61.6mGBP670.1m
3.75% Jul-52GBP131.1m97.82897.797GBP49.6mGBP157.7m
1.625% Oct-54GBP24.2m59.80059.643GBP0.0mGBP61.7m
4.25% Dec-55GBP15.4m108.377108.358GBP0.0mGBP27.1m
1.75% Jul-57GBP0.0m62.116GBP0.0mGBP0.0m
4.00% Jan-60GBP77.4m106.757106.708GBP0.0mGBP0.0m
2.50% Jul-65GBP0.0m77.614GBP7.9mGBP7.7m
3.50% Jul-68GBP26.2m99.99799.834GBP0.0mGBP0.0m
1.625% Oct-71GBP10.5m59.76957.638GBP0.0mGBP0.0m
1.125% Oct-73GBP0.0m45.865GBP0.0mGBP4.5m
TotalGBP1,415.2mGBP442.8mGBP1,025.3m

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