The Bank of England announced the resumption of corporate bond sales as it seeks to restore normalcy following a protracted selloff in UK assets.
The move, revealed in a statement on Monday, comes after the BOE halted sales in the aftermath of a run on UK gilts caused by Liz Truss’s government’s disastrous budget plan. It said it would restart multi-stock auction sales the week of October 24. On October 31, active government bond sales are scheduled to commence.
The BOE said in a statement that an indicative list of bonds available for sale during next week’s operations would be released at 11 a.m. on Friday on its wire services page and website. Its Corporate Bond Purchase Scheme has £18.56 billion ($20.9 billion) in corporate bonds.
The news came on the first trading day after the BOE terminated its emergency bond-buying program, despite the bank of England interest rate, which it used to assist in stabilizing markets and avoid a fire sale of gilts employed in some pension fund plans from reverberating across the UK’s financial markets.