BoE under spotlight: QE dramas to take place again? - UOB

Analysts at UOB noted that the Bank of England’s (BOE) latest bond-buying operation went smoothly as it received an offer-to-cover ratio of 2.93 in the 3-year to 7-year maturities.

Key Quotes:

"The next bondbuying operation results by the BOE on 23 August with GBP1.17bn in the 15-year and longer maturities, and this BOE result will be interesting to watch as this is where the drama for BOE’s QE took place. Recall the unexpected failure to purchase GBP1.17bn in bonds on 9th August (only received GBP1.118bn of offers) which put the spotlight on the limits of unconventional easing and whether if the 9 August episode is just one-off event."