During 2012 Q2:
- As of 28 June 2012 cumulative assets purchased net of sales and redemptions totalled £325 billion.
- On 9 February 2012, the MPC decided to increase the scale of the programme of asset purchases by £50 billion from £275 billion to £325 billion.
- Yields were on average around 40 basis points lower than at the end of 2012 Q1, with the largest falls at medium to long maturities.
- A significant amount of the gilts purchased via the Facility continue to be made available for on-lending to the market through the gilt lending arrangement with the DMO.
- The average daily aggregate value of gilts lent by the APF to the DMO during the three months to 30 June 2012 was £0.4 billion, similar to the £0.5 billion lent on average during the previous quarter.
- Sterling investment-grade non-financial corporate bond spreads over gilt yields widened over the quarter. This was despite falls in corporate bond yields, as gilt yields fell by more than corporate bond yields.
- The Bank’s market contacts nevertheless continue to report strong demand for sterling investment-grade non-financial corporate bonds. In line with this, gross issuance over the period was strong and the APF remained a net seller of corporate bonds.
Asset Purchase Facility Quarterly Report – 2012 Q2