Asset Purchase Facility: Gilt Sales – Market Notice 1 September 2023

At its September 2022 meeting, the MPC voted to reduce the stock of purchased gilts held in the APF by £80bn over the subsequent twelve month period. Q3 2023 is the final quarter of the period over which the MPC’s £80bn target applies. Accordingly, the Bank noted in the APF gilt sales Market Notice published on 23 June 2023 that it may be necessary to make some adjustment to the Q3 sales programme in order to meet the target. 

Due to movements in gilt prices and the realised distribution of sales in Q3 so far, an adjustment to the size of the remaining auctions of the quarter is necessary. Accordingly, for the final three auctions of the quarter, the planned size will be reduced to £650mn from £790mn for each of the short, medium and long maturity auctions. The dates of the individual auctions are unchanged and are specified in the table below.

Other than as amended in this Market Notice, the detailed operational parameters and participation requirements set out previously (including in the consolidated APF gilt sales Market Notice published on 1 September 2022) 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 Q4 2023 or beyond following the MPC’s annual review of the reduction in the stock of purchased gilts over the next twelve-month period, which will be announced alongside the MPC meeting on 21 September 2023.

Table: APF gilt sales auction calendar – September 2023