Bank of England Announces Quarterly Gilt Sales Schedule for Early 2026

The Bank of England has released its quarterly schedule for selling government bonds from its Asset Purchase Facility. This follows a decision by the Monetary Policy Committee in September 2025 to decrease the gilt holdings by £70 billion between October 2025 and September 2026, bringing the total down to £488 billion. The current notice outlines sales for the first quarter of 2026, spanning from January 12 to mid-March. Auctions will be conducted across three maturity categories: short-term bonds (3-7 years), medium-term bonds (7-20 years), and long-term bonds (over 20 years). For Q1 2026, the Bank plans two auctions of £800 million each for short-maturity gilts, two auctions of £775 million each for medium-maturity gilts, and one auction of £675 million for long-maturity gilts. This distribution reflects an adjustment announced in September 2025 to sell fewer long-maturity bonds in response to market demand conditions. The Bank aims to reduce its holdings as evenly as possible across maturity sectors, measured by initial proceeds. Operational parameters from previous notices remain in effect unless amended. The Bank will monitor market conditions and reserves the right to modify the schedule, including auction sizes and bonds offered. The schedule for Q2 2026 is expected to be announced on March 20, 2026. This gilt sales program is part of broader monetary policy adjustments to manage the Bank's balance sheet.