The Bank of England’s Monetary Policy Committee unanimously voted to stop selling long-dated gilts entirely, shifting its active sales program toward shorter and medium-maturity bonds as part of a restructured quantitative tightening timeline through September 2034. The remaining gilt stock for disposal stands at approximately £368 billion, with the BoE targeting an average annual reduction of £46 billion—£20 billion through active market sales and £26 billion through passive maturities as bonds mature. The Bank Rate was held steady at 3.75%. This shift away from long-dated sales should provide relief at the long end of the gilt market, benefiting pension funds and insurers, while concentrated selling in shorter maturities could modestly push yields higher in the 2- to 10-year range.
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