Monday April 27, 03:47 PM
UPDATE 1-BoE gets 2.95 cover ratio at long-dated gilt buyback
LONDON, April 27 (Reuters) - The Bank of England received an offer-to-cover ratio of 2.95 when it bought just under 3.5 billion pounds of 10- to 25-year gilts on Tuesday as part of its asset purchase scheme.
Gilt futures were little changed after the buyback, which attracted somewhat more sellers than one for the same maturities last week.
'The cover ratio was a little higher than some people might have hoped but not bad considering we have an auction of 2022 gilts tomorrow that people have to make room for,' said Jason Simpson, gilts strategist at RBS (LSE: RBS.L - news) .
The average cover ratio for all the central bank's gilt-buying auctions so far is 2.8.
The BoE bought amounts of all the gilts on offer, with the largest purchases being of the 2020 and 2021 gilts, the shortest two maturities.
At 1408 GMT, the long gilt future was 52 ticks higher on the day at 121.18, having stood 44 ticks higher ahead of the auction results.
The central bank will buy 3 billion pounds of medium-dated gilts on Wednesday.
For full details of Monday's purchases, see http://www.bankofengland.co.uk/markets/money/Round2.html/
For data about past purchases, see http://www.bankofengland.co.uk/markets/apf/index.htm#bondresults
(Editing by Ruth Pitchford) Keywords: MARKETS BOE/GILTSPURCHASE
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