Asset Purchase Facility: Gilt Sales – Market Notice 20 December 2024

Market Notice 

At its September 2024 meeting, the MPC voted to reduce the stock of gilts held in the APF by £100 billion over the period from October 2024 to September 2025, to a total of £558 billion.

The Bank set out in the consolidated APF gilt sales Market Notice published on 1 September 2022 that it would publish a quarterly schedule for the sales of gilts held in the APF for monetary policy purposes. The details and schedule for the Q1 2025 sales of such gilts are set out in this Market Notice, which covers the period from 6 January 2025 to the week commencing 27 January 2025. 

As set out in the 15 December 2023 Market Notice, the Bank will set a schedule of auctions in order to continue to reduce the APF as evenly as possible across maturity sectors, measured in initial proceeds terms. The maturity sectors are defined as gilts with a residual maturity of between: 3-7 years (short), 7-20 years (medium) and over 20 years (long).

Accordingly, in Q1 2025, and consistent with the 19 September 2024 Market Notice, the Bank will sell short maturity sector bonds across one auction of £750 million, medium maturity sector bonds across one auction of £725 million, and long maturity sector bonds across one auction of £550 million. Further details are outlined in the table below.

Other than as amended in this Market Notice, the detailed operational parameters and participation requirements set out previously will apply to these gilt sales. 

The Bank will continue to monitor the impact of its gilt sales programme on market conditions, and reserves the right to amend its schedule, including the gilts to be sold and the size of its auctions, or any other aspect of its approach at its sole discretion.

The Bank expects to announce the sales schedule for Q2 2025 at 4.30pm on 21 March 2025.

Table: APF gilt sales auction calendar – January to March 2025