The Bank of England's £70 billion gilt sales target is edging closer to reality, with fresh details on Q3 2026 gilts auctions. By the end of the year, the central bank will have reduced its vast holdings from quantitative easing by a staggering £70 billion. The latest market notice reveals that £2.45 billion in short-maturity sector bonds and £1.2 billion in medium-maturity sector bonds will be sold off through three and two auctions respectively.
This is part of a broader strategy to decrease the stock of gilts held in the APF by September 2026, bringing it down to £488 billion. The Bank has consistently aimed to conduct these sales as evenly as possible across different maturity sectors – short (3-7 years), medium (7-20 years), and long (over 20 years) – based on initial proceeds.
For the upcoming Q3 period, the Bank will conduct three auctions for short-maturity sector bonds, each valued at £725 million. Additionally, there will be two auctions for medium-maturity sector bonds, with each sale amounting to £600 million. This approach follows the Bank's stated intention, announced in September 2025, to sell fewer long-maturity sector gilts compared to other maturities, a decision made to better align with prevailing market demand conditions.
The Bank reserves the right to adjust its schedule if market conditions change, including selling fewer or more gilts than initially planned. With Q3 2026 being the final quarter of the current £70 billion reduction target, any adjustments will be communicated in advance to ensure the target is met by September 2026.
The Bank intends to announce future sales schedules for Q4 2026 and beyond following the MPC’s annual review of the gilt reduction programme. This review, which will determine the pace of reduction for the subsequent twelve-month period, is expected to be announced alongside the MPC meeting scheduled for 17 September 2026.