Free Trial
FOREX

Tight G-10 Ranges, JPY Outperforming

JGBS

Flat To A Touch Richer Across The Curve

US TSYS

Muted Start

JAPAN

Net Flows Moderate

JGB TECHS

(H3) Extends Bounce Off Lows

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

MNI: BOE APF indemnity to trigger gilt issuance surge

APF indemnity could raise raise gilt sales by greater amount than the “Growth Plan”

  • The MNI Markets team calculates that through the first year of active gilt sales the Treasury will have to transfer GBP37bln to the BOE’s APF due to the indemnity (without any policy changes).
  • These costs could exceed the costs of the entirety of the government’s “Growth Plan” (excluding the energy price cap).
  • Any transfers to/from the APF to Treasury directly impact CGNCR – to date this has been helping keep borrowing lower, but this is about to reverse significantly.
  • This may lead the Bank of England to reconsider the parameters for its active gilt sales programme or the interest rate paid on excess reserves at the central bank.
For the full document see the PDF here:

APF_Indemnity_Problem_2022_10.pdf

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.