Asset Purchase Facility: corporate bond sales programme – Market Notice 12 May 2023

This supplementary Market Notice describes the Bank of England’s updated operational approach for the programme of sales of corporate bonds held in the Asset Purchase Facility (APF). The changes to auction structure will take effect in the week beginning 15 May 2023.

Published on 12 May 2023

Market Notice

The stock of corporate bond holdings in the APF has now reduced by over 85% from the initial purchase proceeds of £20bn. At its May 2023 meeting, the Monetary Policy Committee (MPC) noted that sales are expected to conclude in the coming weeks. As announced previously, a small number of very short maturity bonds will continue to be held in the portfolio, maturing fully by 5 April 2024.

Reflecting the reduced number of bonds available for sale, the Bank is making some further operational changes to support the efficiency and effectiveness of its auctions.

From the week beginning 15 May 2023, each bond that remains available for sale will be auctioned on a weekly basis in a single auction every Tuesday from 11am to 11.30am^{footnote [1]}; auctions will no longer be held on Wednesdays.

Other terms as set out in the Market Notices published on 18 August 2022 and 6 April 2023 will remain unchanged.