BoE Halts Long-Dated Gilt Sales Amid Global Bond Rout

The Bank of England (BoE) is set to announce plans to stop selling long-dated government bonds, known as gilts, which have fallen in value due to a global bond rout. The decision could save the government £2.5 billion per year by the end of the decade.

Prices of 20- and 30-year gilts have hit their lowest since 1998, with investors expecting just over 15% of the BoE's bond sales in the next 12 months to be of longer maturity. The central bank has already scaled back its sale of longer-dated gilts.

The BoE is due to announce its plan for quantitative tightening on Thursday, alongside its latest interest rate decision. Halting longer-dated bond sales would free up some cash for finance minister John Healey as he prepares for the government's first budget statement in October.