Market Notice
At its September 2024 meeting, the MPC voted to reduce the stock of gilts held in the APF by £100 billion over the period from October 2024 to September 2025, to a total of £558 billion.
The Bank set out in the consolidated APF gilt sales Market Notice published on 1 September 2022 that it would publish a quarterly schedule for the sales of gilts held in the APF for monetary policy purposes. The details and schedule for the Q3 2025 sales of such gilts are set out in this Market Notice, which covers the period from 7 July 2025 to the week commencing 28 July 2025.
As set out in the 15 December 2023 Market Notice, the Bank will set a schedule of auctions in order to continue to reduce the APF as evenly as possible across maturity sectors, measured in initial proceeds terms. The maturity sectors are defined as gilts with a residual maturity of between: 3-7 years (short), 7-20 years (medium) and over 20 years (long).
In the 19 September 2024 Market Notice, the Bank set out that it expected to hold one auction in each of the maturity sectors in each of the first three quarters, with the final quarter (Q3 2025) likely to consist of only short and medium maturity sector auctions. In the 10 April 2025 Market Notice, the Bank noted that it intended to reschedule a long maturity auction from Q2 2025, to the following quarter. Accordingly, in Q3 2025 the Bank will sell short maturity sector bonds across one auction of £750 million, medium maturity sector bonds across one auction of £750 million, and long maturity sector bonds across one auction of £600 million. Further details are outlined in the table below.
Other than as amended in this Market Notice, the detailed operational parameters and participation requirements set out previously will apply to these gilt sales.
The Bank will continue to monitor the impact of its gilt sales programme on market conditions, and reserves the right to amend its schedule, including the gilts to be sold and the size of its auctions, or any other aspect of its approach at its sole discretion.
The Bank intends to communicate any future sales schedules for 2025 Q4 or beyond following the MPC’s annual review of the reduction in the stock of purchased gilts over the next twelve-month period, which is expected to be announced alongside the MPC meeting on 18 September 2025.
Table: APF gilt sales auction calendar – July to September 2025
|
Auction date |
Maturity sector |
Auction size |
|
Monday 7 July |
Short |
£750mn |
|
Monday 21 July |
Long |
£600mn |
|
Monday 28 July |
Medium |
£750mn |