Bank of England Weighs Halt on Long-Term Gilts Amid Bond Market Volatility

The Bank of England is reportedly preparing to stop selling long-term government bonds as part of a broader overhaul of its debt-selling strategy. This move comes amid heightened volatility in the UK bond market, with prices of 20- and 30-year gilts falling to their lowest levels since 1998 last week.

The central bank has already reduced its reliance on longer-dated gilts in its sales program, according to analysts at Deutsche Bank. They have also expected the Bank of England to eventually stop selling bonds with the longest maturities.

Any decision to suspend sales of 20- and 30-year gilts would mark a significant adjustment to its debt reduction strategy as policymakers seek to navigate ongoing bond-market turbulence. The potential change could be announced alongside the central bank's latest interest rate decision on Thursday, but the final decision remains with the Bank of England.