On Wednesday, the Bank of England (BoE) announced plans to sell some long-dated and index-linked gilts. These gilts were purchased by the bank in the period from September 28 to October 14 in order to provide stability to the financial markets. The gilts total 19.3 billion pounds ($23.2 billion).
According to the bank's statement, the sales will start next week, Nov. 29. It was also noted that unlike auctions with those gilts, which were purchased for quantitative easing, the number of these gilts sold will depend only on demand.
In addition, the BoE presented the sales schedule. Securities can be purchased on Tuesdays, Wednesdays and Fridays. The Bank will set the minimum price on its own each day before sales start.
The bank also stressed that it will try to exclude the sale of those bonds that fell sharply in price on the day of trading. Moreover, he assured that information on completed sales will be regularly and quickly updated.