Asset Purchase Facility Quarterly Report - 2013 Q1

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 22 April 2013

During 2013 Q1:

On 5 July 2012, the MPC decided to increase the scale of the programme of asset purchases by £50 billion from £325 billion to £375 billion.
The MPC voted to maintain the stock of asset purchases at £375 billion on 10 January, 7 February and 7 March 2013.
On 7 February 2013, the MPC voted to reinvest the cash flows associated with the redemption of the March 2013 gilt. A total of £6.6 billion of gilts were purchased in the three weeks after the gilt matured on 7 March 2013.
Nominal gilt yields were little changed over 2013 Q1, with shorter maturity yields falling on average around 11 basis points, and longer maturity yields rising on average around 5 basis points.
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 31 March 2013 was £0.3 billion.
Sterling investment grade non-financial corporate bond spreads narrowed slightly over the quarter.
Gross issuance of corporate bonds in 2013 Q1 was relatively strong. The amount was lower than in 2012 Q1, but higher than in previous years, which contacts attributed to continued strong end-investor demand for corporate debt.