Asset Purchase Facility Gilt Purchases - Market Notice 5 November 2015

As set out in the MPC’s statement of 5 November, the MPC has agreed to make £6.3bn of gilt purchases, financed by central bank reserves, to reinvest the cash flows associated with the maturity on 7 December 2015 of a gilt owned by the Asset Purchase Facility (APF).
Published on 05 November 2015

2. Operations to make these gilt purchases will commence in the week beginning 7 December 2015. The range of gilts eligible for purchase will remain unchanged from previous operations. The Bank intends to hold operations according to the following schedule:

  • Monday 7 December, gilts with a residual maturity of 3-7 years;
  • Tuesday 8 December, gilts with a residual maturity of over 15 years;
  • Wednesday 9 December, gilts with a residual maturity of 7-15 years;
  • Monday 14 December, gilts with a residual maturity of 3-7 years;
  • Tuesday 15 December, gilts with a residual maturity of over 15 years; and
  • Wednesday 16 December, gilts with a residual maturity of 7-15 years.

3. The Bank intends to purchase evenly across the three gilt maturity sectors. The size of auctions will initially be £1,045mn for each maturity sector.

4. The Bank will confirm details of the following week’s operations each Thursday at 16.00. The Bank does not currently intend to purchase gilts where the Bank holds more than 70% of the “free float”, i.e. the total amount in issue minus government holdings. The Bank will, however, continue to keep the identity of gilts eligible for purchase in the APF under review.

5. Other than as amended by this Market Notice, previous Market Notices relating to the Bank’s gilt purchases under the APF will apply.


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