Asset Purchase Facility Quarterly Report - 2012 Q2

In the interests of openness and transparency, we publish a quarterly report on the transactions carried out as part of the Asset Purchase Facility. The reports are published shortly after the end of each quarter.
Published on 23 July 2012

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.

PDF Asset Purchase Facility Quarterly Report – 2012 Q2

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