BOE Gets 2.39 Cover At Over 15 Year Gilt Auction

LONDON (MNI) – Cover at the Bank of England’s over 15 year reverse
Gilt auction Tuesday came in at 2.39, with the central bank now seeing
robust cover at its longest maturity auctions.

The central bank replaced the previous over 25-year purchase basket
with the over 15 year one when it announced an extra Stg50 billion of
quantitative easing this month. This has eased the problem of trying to
buy at the ultra-long end of the market, where banks and pension funds
are reluctant sellers.

The BOE bought Gilts at 13 of the 14 maturities it was offered.
The only Gilt in the auction it purchased none of was the 6.0% 2028.

–London newsroom 0044 20 7862 7491; email: drobinson@marketnews.com

[TOPICS: M$$BE$]