The gilt-edged market development programme continued in 1996, and gilt repo trading concluded a successful first year. Ten-year gilt yields were little changed at year-end from the previous year, but the yield curve was flatter. EMU-related market movements meant that gilts underperformed bond markets in European countries, despite the strength of sterling toward the end of the year. Gilt sales raised nearly £40 billion in 1996, taking the value of gilt-edged stock outstanding to £285 billion. Further reforms to the issuance process contributed to strong auction results and rapid sales of tap stocks in 1996. Secondary market turnover in gilts continued to increase. The year concluded with the Bank’s proposals to extend its daily money-market operations to operate in gilt repo and to abolish the requirement that the gilt-edged market-makers be separately capitalised entities.