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MNI BRIEF: BOE Confirms Gilt Sales To Commence Nov 1

(MNI) LONDON

An unwind of the Bank of England's pile of giits will begin in the week of Oct 31, it announced on Tuesday, confirming the first sale will be held on Nov 1. (See MNI POLICY: BOE To Examine Gilt Sales Plan In Wake Of Turmoil).

The Bank's Executive met Tuesday and decided that the first sales will take place the day after the government’s Oct 31 fiscal announcement, it said. On Sept 28, the BOE had already pushed back the sales by a month and stepped in to buy longer-dated gilts due to market “dysfunction” following the government's Sept 23 mini-budget, many of whose measures have now been reversed.

With the BOE looking to unwind recent weeks’ bond purchases as soon as possible, the sales authorised by the Monetary Policy Committee in September will now consist of only short- and medium-term auctions, although sales in Q4 will be conducted at a similar scale and pace to the GBP10 billion originally outlined.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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