TREE NEWS reports: The Bank of England may soon stop selling the long-dated government bonds it bought during the financial crisis and the COVID-19 pandemic, as long-dated gilt yields climb to multi-decade highs. Officials at the BoE, the Treasury and the Debt Management Office have drafted plans, though the final decision rests with the central bank. Market participants expect the BoE to slow its balance-sheet reduction to £50 billion a year over the 12 months starting in October, keeping active sales at about £20 billion.
Bank of England May Halt Long-Dated Gilt Sales as Yields Hit Multi-Decade Highs
The signal here is about the interaction between monetary policy and fiscal supply, not the gilt market alone. Long-dated yields at multi-decade highs constrain the BoE's room to keep shrinking its balance sheet, and the drafting of plans across the central bank, Treasury and DMO suggests coordination is already underway. The open question is whether any slowdown in active sales is read as a technical adjustment or as a broader retreat from quantitative tightening.
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