BOE announces temporary pause to corporate bond sale operations this week

The Bank of England (BOE) announced in a statement on Tuesday, it will temporarily pause corporate bond sale operations this week.

Additional takeaways

Intends to purchase index-linked gilts

Purchase of linkers will take effect from Oct 11 to Oct 14

Linker purchases will act as backstop to restore orderly market conditions

Linker purchases are time-limited, indemnified by treasury

Has consulted with debt management office

Repeats that it stands ready to purchase up to 10 bln stg of gilts each day

Purchase of long-dated conventional gilts unaffected by latest announcement on linkers

Size of each linker purchase operation will be up to GBP5 bln.

Will set minimum yield that will be applied to temporary purchases of linkers.

Will not allocate offers for linkers at real yields below levels observed at close on Monday.