Bank of England explains that the total amount of zero purchases of government bonds for the second consecutive day does not meet the criteria | Reuters

With the temporary purchase of long-term government bonds that the Bank of England (British Central Bank, photo) is implementing to stabilize the market, the purchase amount on the 5th was zero for two consecutive business days. Photo taken in March 2020 (2022 REUTERS/Hannah McKay)

[ロンドン 5日 ロイター] – With the temporary purchase of long-term government bonds that the Bank of England (British Central Bank) is implementing to stabilize the market, the purchase amount on the 5th was zero for the second consecutive business day. All of the 413.6 million pounds ($467 million) of bids received did not meet the threshold.

The central bank explained why it did not win the full bid on the day. “The central bank’s bidding method does not depend on absolute prices, yields, or who the bidder is,” and the spread between the yield on the bid and the mid-market price at the end of the auction, and the English He said the central bank decides whether or not to win bids by comparing predetermined standards, and said it will not accept bids that do not meet the standards.

Since its introduction, the Bank of England has said it will not disclose benchmarks before bidding. He said the purchases were intended to help stabilize the market, not to cap yields at a certain level.

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