BOE Over 25-year Reverse Gilt Auction Gets Cover Of 2.07
LONDON (MNI) - The Bank of England paid above market rates for all seven Gilts purchased at its over 25-year reverse auction Tuesday, leading to March Gilt futures moderating earlier losses.
The BOE auction saw a cover ratio of 2.07, with the bulk of the Gilt sales to the central bank of the 4.75% 2038 Gilt.
The BOE received offers of stg1.78729 billion of the 4.75% 2038 Gilt, which exceeded the entire size of the stg1.7 billion reverse auction. The central bank accepted stg646 million worth of the offers.
The 4.75% 2038 Gilt appears to have been handed in by market participants ahead of Wednesday's auction of a Gilt of very similar maturity, the 4.25% 2039.
The following table shows the details of the auction.
Date: Dec 1 Total Offered: Stg1.7 billion, over 25 year gilts Total Bought From Competitive Sector: stg1.69 billion
Gilt Amount Avg. Price Bought Price Pre- Stg mln Paid Auction
