Bank of England Abandons Long-Term Gilt Sales Amid Bond Market Turmoil

The Bank of England has announced plans to overhaul its debt sales strategy in response to bond market turmoil. According to reports, the bank will stop selling 20- and 30-year gilts this quarter, shifting gilt auctions to shorter maturities that better match demand dynamics.

This move marks a significant change for the Bank of England, which has been selling long-dated gilts since January 2023. The decision is part of a broader plan to reduce the APF's gilt holdings by £70 billion through sales and maturities over the Oct 2025-Sept 2026 period.

The exact reasons behind this change are attributed to recent turmoil in the bond market, prompting a review of debt management policies. An official announcement is expected on Thursday alongside a crucial vote on interest rates.