- The Bank of England plans to slow the pace of its bond sales, easing pressure on repo operations and providing a tailwind for strained long-end gilts, according to Barclays.
- Barclays strategist Moyeen Islam says the move created a positive environment for long-dated gilt spreads and the long end of the curve by creating a genuine shortage of paper unlikely to be alleviated soon.
- The BOE is implicitly taking operational pressure off its repo operations.
Quotes
“created a very positive environment for long-dated gilt spreads and the long end of the curve by creating a genuine shortage of paper that is unlikely to be alleviated any time soon”
“implicitly taking some of the operational pressure off its repo operations”