Bank of England Shifts Focus to Short Maturity Bonds

In response to recent market fluctuations, the Bank of England (BoE) announced a strategic adjustment to its bond auction plans. Instead of proceeding with long maturity bonds as initially scheduled, the BoE will now auction short maturity bonds on April 14, 2025.

Rescheduling for a Balanced Reduction

The BoE detailed its decision to reschedule the long maturity auction to the following quarter. This move aims to ensure a more even reduction of the Asset Purchase Facility (APF) across different maturity sectors. The schedule for the second quarter remains unchanged otherwise, highlighting the bank's commitment to stability amidst uncertainty.

Monitoring Market Conditions

As previously noted in the BoE's Market Notice on March 21, 2025, the bank continues to vigilantly monitor the effects of its gilt sales programme on market conditions. Adjustments to the schedule will be made as necessary, underscoring the BoE's adaptive approach to maintaining market equilibrium.