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Why was there such a low take-up at today's long-dated purchase op?

BOE
  • There is no detail on the prices of the offers that were rejected - only for those accepted.
  • Only one gilt was purchased - the 3.25% Jan-44 gilt for GBP22.1mln with an WAAP of 91.35 and a high accepted price of 91.400.
  • We recorded the midprice at 91.700 - and there were GBP609.4mln bids rejected for this bond in particular.
  • We noted last week that the BOE was buying with a reasonable bid-ask spread over the mid-price.
  • The question now is are the BOE only accepting offers below the mid-price, or were the other offers submitted today too far below mids?

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