Gilts rally as Bank of England pauses bond sales - The Times

UK government bonds, known as gilts, rallied after the Bank of England paused its programme of active gilt sales, according to The Times. The move means the central bank has stepped back from reducing its bond holdings through outright sales for now, easing a source of supply pressure in the market. Gilt prices rose as a result, with yields — which move inversely to prices — falling.

The decision matters because the Bank's asset holdings, accumulated through quantitative easing, have been unwound in recent years. Active sales add to the supply of bonds investors must absorb, which can push yields higher. Pausing them removes that near-term pressure, offering support to prices.

For observers, the key question is whether this is a temporary pause or a lasting shift in approach. Attention will focus on the Bank's future policy statements and any guidance on the pace of balance-sheet reduction, alongside broader inflation and rate expectations that continue to shape gilt market sentiment.