BoE bond purchases run into difficulties
Auction ends up undersubscribed despite high price
The Bank of England fell short of its target for government bond purchases on the second day of trading under its new quantitative easing (QE) programme, in an unusual failure of its bond-buying mechanism.
At a reverse auction on August 9 for bonds with a residual maturity of over 15 years, the BoE received bids worth £1.12 billion ($1.45 billion), having targeted purchases of £1.17 billion.
The central bank is already paying a premium for the bonds, but the lack of interest implies large
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