Bank of England to Halt Sales of Long-Dated Gilts in Debt Sale Overhaul

The Bank of England is preparing to stop selling 20- and 30-year gilts as part of a broader overhaul of how it offloads debt from its balance sheet, according to a newspaper report.

The change comes amid turbulence in the bond market, the report said, and an official announcement is expected on Thursday, alongside a closely watched vote on interest rates.

The central bank has been reducing the stock of government bonds it accumulated through years of quantitative easing. Its approach to those sales has drawn scrutiny as long-dated gilt yields have moved sharply.

Under the reported plans, the Bank would cease disposing of the longest-dated conventional gilts, a segment of the market where demand has been more fragile. The overhaul would mark a shift in the pace and composition of the central bank's asset reduction programme.

The report could not be independently verified. The Bank of England has not commented on the matter.

Investors are likely to focus on Thursday's rate decision and any accompanying statement on the bond sales plan, which together could shape expectations for borrowing costs and public finances.