The BoE sells GBP 600mln medium-term Gilts: b/c 1.81x

This is an APF unwind auction, part of the Bank's ongoing quantitative tightening rather than a policy signal in itself, and the coverage ratio is the standard health check on demand for scheduled sales. A b/c around this level sits within the range these operations have typically attracted: demand for medium-term stock has historically been firmer than at the long end, where the natural buyer base is thinner and tail risk in the auctions has been greater. The distinction worth drawing is between QT sales, which are pre-announced and mechanical, and DMO issuance, where supply surprises actually move the curve; APF auctions have rarely been market-moving events unless coverage falls sharply or the operation tails badly. The tells in past episodes have been the tail versus the prevailing secondary level and any trend in coverage across successive operations in the same maturity bucket, since a pattern of weakening demand there has preceded questions about the pace of the unwind. The next reference points are the remaining auctions in the current schedule and any MPC commentary on the annual gilt sales target, where the Bank has previously adjusted the envelope in response to market functioning.