BOE Announces 1.79 Cover at 10- to 25-Yr Gilt Rev. Auction

LONDON (MNI) – The Bank of England managed to achieve solid
cover at its 10- to 25-year reverse gilt auction today of 1.79 times.

The cover was somewhat on the high side for recent auctions.

There have been concerns that the current pace of quantitative
easing is causing indigestion in the gilt market, so today’s cover ought
may provide some reasurrance that there is enough appetite for the
present stg75bn QE programme which is due to expire in February.

BOE Executive Director Markets Paul Fisher told the Treasury Select
Committee on Monday that – although the MPC could decide to raise the
tempo of its gilt purchases – this would heighten the risk that
some auctions might not be covered.

–London Bureau; Tel: +442078627492; email: dthomas@marketnews.com

[TOPICS: MABDS$,M$$BE$]