Understanding the Asset Purchase Facility: Gilt Sales – Market Notice for December 19, 2025
In a world where financial decisions can have significant consequences, the latest Market Notice from the Bank of England reveals crucial updates regarding the management of government bonds known as gilts. If you’re curious about how these changes might affect monetary policy, keep reading! But here's where it gets controversial: not everyone agrees on the best approach to handling government debt.
This Market Notice details the planned schedule for gilt sales in the first quarter of 2026, specifically for those bonds held within the Asset Purchase Facility (APF) aimed at supporting monetary policy objectives.
The Monetary Policy Committee (MPC) made a pivotal decision during its September 2025 meeting, voting to decrease the total stock of gilts maintained in the APF by £70 billion between October 2025 and September 2026, bringing the total down to £488 billion. This move is part of a broader strategy to manage economic stability through carefully planned financial instruments.
In previous communications, particularly the consolidated APF gilt sales Market Notice published on September 1, 2022, the Bank committed to providing a quarterly timetable for gilt sales intended for monetary policy purposes. This current Market Notice sets forth specific details regarding the sales scheduled for Q1 2026, spanning from January 12 to the week commencing March 16, 2026.
According to the Market Notice dated December 15, 2023, the Bank aims to maintain an even distribution of gilt sales across various maturity sectors, which are categorized by the remaining time until they mature: short-term (3-7 years), medium-term (7-20 years), and long-term (over 20 years).
Furthermore, in a strategic adjustment outlined in the September 18, 2025 Market Notice, the Bank indicated that throughout the year starting from Q4 2025, it would prioritize selling fewer long-term gilts compared to other maturities to better align with market demand.
For Q1 2026, the sales plan includes two auctions of £800 million for short maturity bonds, two auctions of £775 million for medium maturity bonds, and one auction of £675 million for long maturity bonds. For clarity, the auction schedule is detailed below:
Table 1: APF Gilt Sales Auction Calendar – January to March 2026
Auction Date | Maturity Sector | Auction Size
--- | --- | ---
Monday, January 12 | Short | £800 million
Monday, January 26 | Long | £675 million
Monday, February 9 | Medium | £775 million
Monday, March 9 | Medium | £775 million
Monday, March 16 | Short | £800 million
In addition, the table below provides an indicative forecast of the number of auctions expected in the upcoming quarters. It's important to note that these figures may change based on fluctuations in gilt prices and the actual distribution of sales throughout the year.
Table 2: Indicative Number of Auctions for Future Quarters
Period | Maturity Sector | Short | Medium | Long
--- | --- | --- | --- | ---
April-June 2026 | - | 2 | 2 | 1
July-September 2026 | - | 3 | 2 | 0
Other than the adjustments specified in this notice, all previously established operational parameters and participation requirements will remain applicable to these gilt sales. The Bank will keep a close eye on how its gilt sales program influences market conditions and retains the right to modify its schedule, including alterations to the types of gilts sold and the sizes of the auctions, at its discretion.
Looking ahead, the schedule for Q2 2026 is anticipated to be announced at 4:30 PM on March 20, 2026.
As we navigate this complex landscape of financial policies, one must ponder: Are these measures sufficient to maintain economic stability, or do they risk exacerbating existing issues? We invite you to share your thoughts and opinions in the comments below.
