Bank of England weighs halt on long-term gilts

The Bank of England is reportedly preparing to stop selling 20- and 30-year government bonds as part of a broader overhaul of its debt-selling strategy amid heightened volatility in the UK bond market.

The reported move could be announced alongside the central bank’s latest interest rate decision on Thursday. However, the final decision remains with the Bank of England.

The potential change comes after prices of 20- and 30-year gilts fell to their lowest levels since 1998 last week, reflecting growing pressure in the long-term government debt market.

The central bank has already reduced its reliance on longer-dated gilts in its sales programme. Analysts at Deutsche Bank have also expected the Bank of England to eventually stop selling bonds with the longest maturities.

The reported plan comes as UK borrowing costs remain elevated and investors closely monitor the central bank’s approach to reducing its bond holdings.

The Bank of England has not immediately commented on the report. Any decision to suspend sales of 20- and 30-year gilts would mark a significant adjustment to its debt reduction strategy as policymakers seek to navigate ongoing bond-market turbulence.