Asset Purchase Facility: Gilt Sales – Market Notice 17 September 2026

At its meeting ending on 16 September 2026, the MPC set out a multi-year path to reduce the stock of UK government bond purchases held henceforth for monetary policy purposes to zero, through annual sales of £20 billion alongside maturing gilts.

In implementing the MPC’s decision, the Bank Executive has decided to retain in the APF £222 billion of gilts maturing before 2035 to maturity. In addition, £120 billion of the longest-dated gilts will remain in the APF and be held to maturity by the Bank for the purposes of indirectly backing current and future banknote issuance. These include part of the APF’s holding of the 1.75% 2049 gilt, and all gilts that mature after that.

For the remaining gilts, which mature between 2035 and 2049, and amount to £146 billion in purchase proceeds terms, the Bank has engaged with HM Treasury (HMT) and the Debt Management Office (DMO) to consider a model whereby the MPC’s decision could be implemented through APF sales to the Government. Under this model, HMT would instruct the DMO to purchase the APF gilts that the Bank Executive is selling in its implementation of the MPC’s multi-year plan. Sales would be conducted at market prices and in a pre-defined manner, pre-announced by the Bank Executive. Gilts would be sold at an annualised pace of £20 billion a year, in line with the MPC’s decision on its multi-year approach to APF unwind, with sales concluding around the time of the unwind of gilts held to maturity in 2034.