Bank of England stops long-dated gilt sales, sets £46 billion annual unwind through 2034

  • MPC stops long-dated gilt sales and redirects active purchases toward shorter maturities.
  • £46 billion will leave the balance sheet annually, including £20 billion through active sales.
  • The revised quantitative-tightening schedule runs through September 2034, with no long-dated auctions in Q3 2026.

The Bank of England’s Monetary Policy Committee (MPC) unanimously voted to stop selling long-dated gilts (U.K. government bonds) and redirect active quantitative tightening (shrinking a central bank balance sheet) toward shorter and medium maturities. The restructured program runs through September 2034 and targets an average annual reduction of £46 billion. Active open-market sales will account for £20 billion a year, while £26 billion will come passively as bonds mature. Of the roughly £368 billion of gilts earmarked for disposal, £222 billion is expected to mature naturally and £146 billion will be sold outright. No long-dated gilt auctions are scheduled for the third quarter of 2026. The Bank Rate remained at 3.75% after the MPC’s unanimous meeting decision on September 16, 2026. The shift should ease supply pressure on long-dated gilts, benefiting pension funds and insurers, while concentrating sales in shorter maturities could put modest upward pressure on two- to 10-year yields.

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