Gilt sales total pounds 30bn

In its annual review of the gilt market, the Bank of England said it had sold pounds 30bn of gilts between April 1994 and March 1995, of which 12 per cent was in index-linked gilts. Conventional gilt sales were split roughly 25/40/35 per cent between shorts, mediums and longs.

In line with the policy of building up benchmark issues at key maturities, there were now 16 stocks with over pounds 5bn outstanding. Pension fund investment in gilts increased materially for the first time for some years, reflecting the growing number of mature funds. The Bank is holding a conference later this week on the index-linked market, which it is anxious to expand.