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Bank of England finds plenty of sellers as it buys long-dated gilts

Published 16/08/2016, 15:24
© Reuters.  Bank of England finds plenty of sellers as it buys long-dated gilts

LONDON (Reuters) - The Bank of England found no shortage of sellers as it purchased long-dated gilts for its bond-buying stimulus programme on Tuesday, avoiding a repeat of last week, when it fell short of its target.

Investors offered the BoE 3.124 billion pounds of British government bonds with a duration of more than 15 years, 2.67 times the 1.17 billion pounds purchased by the bank.

Last week, the central bank failed to find enough willing sellers to meet its purchase target for the first time since it started buying government bonds to boost Britain's economy in 2009, pushing bond yields to record lows.

The central bank last bought significant volumes of gilts in 2012, and now aims to buy 60 billion pounds of government debt over the next six months.

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