Asset Purchase Facility: Gilt Sales Amendment - Market Notice 10 April 2025

The Bank set out the schedule for sales in Q2 2025 of gilts held in the APF for monetary policy purposes in the 21 March 2025 Market Notice. In light of recent market volatility, the Bank will amend this schedule, and auction short maturity bonds on 14 April, instead of long maturity bonds. The Bank intends to reschedule the long maturity auction to the following quarter, in order to continue to reduce the APF as evenly as possible across maturity sectors, measured in initial proceeds terms. The schedule for Q2 is otherwise unchanged, as set out in the table below.
 
The Bank executes the programme of sales of gilts held in the APF for monetary policy purposes, in line with the MPC's key principles. First, the MPC intends to use Bank Rate as its active policy tool when adjusting the stance of monetary policy. Second, sales are being conducted so as not to disrupt the functioning of financial markets, and only in appropriate market conditions. Third, to help achieve that, sales are being conducted in a relatively gradual and predictable manner over a period of time.
 
As set out in the 21 March 2025 Market Notice, the Bank will continue to monitor the impact of its gilt sales programme on market conditions, and reserves the right to amend its schedule, including the gilts to be sold and the size of its auctions, or any other aspect of its approach at its sole discretion. 
 
The Bank expects to announce the sales schedule for Q3 2025 at 4.30pm on 20 June 2025.

Table: Amended APF gilt sales auction calendar – April to June 2025

Auction date	Maturity sector	Auction size
Monday 7 April	Medium	£750mn
Monday 14 April	Short	£750mn
Monday 28 April	Short	£750mn