Bank of England Halts Long-Dated Gilt Sales Amid Market Turmoil

The Bank of England has put its long-dated gilt sales on hold for the next six months and will no longer sell gilts entirely. This decision comes as part of a multi-year plan to offload most of its remaining £488 billion in gilts by 2034.

British government bond yields fell by 6-8 basis points following the announcement, with KPMG Chief Economist Yael Selfin stating that this could help ease upward pressure on UK bond yields. However, a sustained fall in borrowing costs will depend on confidence in the UK's fiscal outlook and broader global factors.

The Bank of England bought £895 billion of sterling debt between 2009 and 2021 through successive programmes of quantitative easing aimed at boosting the economy and keeping down longer-term interest rates.