UK Gilts and the Bank of England — 2026-09-15
The Bank of England is reported to be preparing to stop selling 20- and 30-year gilts as 10- and 30-year yields rise toward 6%, putting pressure on the long end of the gilt curve. At the same time, economists urged Chancellor John Healey to press the BoE to slow or halt bond-selling, while fresh gilt-sale data showed £1.25bn sold in 2029 maturities and sterling slipped to near 1.35.
UK Gilts and the Bank of England — 2026-09-15
Top developments
Bank of England to halt 20- and 30-year gilt sales, report says
The Telegraph reported on 15 September that the Bank of England plans to halt sales of 20- and 30-year gilts in a major overhaul of its debt operations, with the announcement expected on Thursday. The newspaper said the move could save billions as Britain faces its highest borrowing rates in more than 25 years.
This matters for the long end because active BoE gilt sales are a direct source of official supply, and the reported pause arrives as the 30-year yield is quoted near 6%.
Long-end yields press toward 6%
Guido Fawkes reported on 15 September that 10-year gilt yields had climbed to 5.41% and 30-year gilts to 5.93%, adding that gilts were taking a heavier beating than most continental bonds.
Higher long-dated yields lift debt-service costs and tighten the fiscal backdrop ahead of the October Budget.
Economists press Healey to slow or halt bond-selling
The Guardian reported on 15 September that economists urged John Healey to press the Bank of England to change a policy that is costing the exchequer billions, arguing that slower or halted bond-selling could reduce UK borrowing costs.
For a daily gilt wrap, this links quantitative tightening directly to long-end pricing: fewer official sales would reduce one visible supply channel, although the BoE’s broader QT path remains under scrutiny.
DMO keeps issuing at medium and short maturities
Investing.com reported on 15 September that the UK sold £1.25bn of Treasury gilts maturing in 2029.
The DMO website also listed the result of the auction of £5,000m of 4⅝% Treasury Gilt 2030 on 10 September 2026.
That pattern matters because the market can absorb shorter and intermediate maturities while official long-dated sales may be paused, shifting attention to where the next marginal buyer appears.
Global bond selloff weighs on sterling and gilt risk premia
Euronews reported on 15 September that the US 10-year yield briefly rose to 5.011%, its highest since October 2023, amid a global bond selloff.
FXStreet reported that GBP/USD closed just beneath 1.3500 on Monday, 0.19% lower, after trading to its lowest level since 14 August.
For gilts, a weaker pound and higher global yields can feed into inflation expectations and term premia, complicating the BoE’s policy calculus.
Local view
German-language Investing.com reported that Goldman Sachs raised its gilt yield forecasts, saying higher energy prices were dampening hopes of rate cuts.
German FXStreet said sterling tested two-month lows around 1.3464 as rising US yields left the Federal Reserve driving market outcomes.
French outlet France-Épargne previewed the 17 September BoE meeting as a likely hold at 3.75% and a reduction in annual quantitative tightening to £50bn.
Former prime minister Liz Truss posted on X that gilts were “almost at 6%”, joking that the Bank of England never achieved that in her era.
OMFIF argued that the UK’s fiscal rules do not work and that John Healey’s October Budget must reconcile spending and tax pressures in a difficult market backdrop.
Context & numbers
- 10-year gilt yield: 5.41%.
- 30-year gilt yield: 5.93%.
- Reported BoE operation change: halt sales of 20- and 30-year gilts, announcement expected Thursday.
- Quantitative tightening: EBC said annual QT could fall to £50bn while active gilt sales stay near £20bn.
- DMO supply: £1.25bn of 2029 Treasury gilts sold on 15 September; £5,000m of 4⅝% Treasury Gilt 2030 auction result dated 10 September 2026.
- Sterling: GBP/USD closed just beneath 1.3500 on Monday, 0.19% lower, after touching its lowest level since 14 August.
- Global benchmark: US 10-year yield briefly hit 5.011%, its highest since October 2023.
- Fiscal backdrop: OMFIF said Healey is due to deliver the first budget of the Burnham government at the end of October and argued the UK’s fiscal rules do not work.
On the radar
- The BoE’s debt-operation announcement is expected on Thursday, according to the Telegraph.
- France-Épargne flagged the 17 September BoE meeting as the next policy date, with a possible hold at 3.75% and QT trimmed to £50bn.
- The ONS public finances release due on 22 September will provide the next official borrowing and debt data point, according to a commentary by Steve Baker.
- The October Budget is the next fiscal anchor for gilt investors, with OMFIF saying the fiscal rules are not working.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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