Asset Purchase Facility Quarterly Report - 2013 Q3

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 28 October 2013

During 2013 Q3:

Nominal gilt yields at maturities up to 20 years rose over 2013 Q3 by an average of around 10 basis points.
Yields with maturity beyond 20 years fell by an average of around 10 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 30 September 2013 was £0.3 billion.
Sterling investment-grade non-financial corporate bond spreads narrowed slightly over 2013 Q3, partially reversing the moves seen in May and June. Bid-ask spreads, as quoted by market makers, were stable over 2013 Q3.
Gross issuance of corporate bonds in 2013 Q3 was relatively strong. The amount was lower than in 2012 Q3, but higher than in most of the previous years. Strong bond issuance was concentrated towards the end of the quarter, following a typically quiet summer period.