We use necessary cookies to make our site work (for example, to manage your session). We’d also like to use some non-essential cookies (including third-party cookies) to help us improve the site. By clicking ‘Accept recommended settings’ on this banner, you accept our use of optional cookies.
Necessary cookies enable core functionality on our website such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.
We use analytics cookies so we can keep track of the number of visitors to various parts of the site and understand how our website is used. For more information on how these cookies work please see our Cookie policy.
Nothing searched for. Please enter a search term.
The Bank has today completed its sales of the £19.3bn portfolio of temporary holdings of UK government bonds purchased in Autumn 2022 on financial stability grounds.
Between 28 September and 14 October, the Bank of England, in line with its financial stability objective, conducted temporary and targeted purchases of index-linked and long-dated conventional UK government bonds (gilts). In total, the Bank purchased £19.3bn of gilts, of which £12.1bn were long-dated conventional gilts and £7.2bn were index-linked gilts.
The Bank has now fully sold its £19.3bn portfolio of temporary gilt holdings. This follows yesterday’s reverse enquiry window, and the subsequent bilateral sale of small remaining holdings.
The purchases were made to restore orderly market conditions following dysfunction in the UK gilt market, and in doing so reduce risks from contagion to credit conditions for UK households and businesses.
To ensure the Bank delivered on its commitment that the purchases would be temporary in nature, the Bank began unwinding these purchases on 29 November. The gilts in this portfolio were made available to interested buyers via reverse enquiry windows. This approach helped ensure that the unwind was responsive to market demand and did not trigger renewed dysfunction.
The Financial Policy Committee has welcomed the Bank’s timely but orderly unwind of this portfolio.
The Monetary Policy Committee (MPC) has been informed, in line with the Concordat governing MPC’s engagement with the Bank Executive regarding balance sheet operations.
Back to top
Thanks! Would you like to give more detail? Press Spacebar or Enter to select
©2023 Bank of England