The Bank of England’s buying of Gilts (UK government bonds) will continue through July 29 and the bank will eye free float and the shape of the yield curve when making buying decisions (it owns up to 70% of some issues).
It is unclear from the headline whether they are keeping the program under review from a narrow perspective over the course of the next few weeks while the use the balance of the GBP 125 bln already allotted or if they are reviewing the program from a macro sense. Given that they did not ask to extend the program at today’s MPC meeting, I’m voting for the more narrow interpretation. Cable is trading quietly at 1.6225.