Use of Standing and Special Gilt Repo Facility

Report Overview

This report provides data on the use of the standing and special gilt repo facility in the chosen period. Information is available for all instances that the standing and special gilt repo facility has been used since the DMO came into being on 1 April 1998.

1 The DMO introduced the Standing Repo Facility in June 2000. Until April 2008, the rate at which the DMO lent gilts was set at one-tenth of the Bank of England's official Base Rate. From April 2008, the rate was determined as a fixed margin of 300 basis points below the Bank of England's Base Rate. In November 2008, a floor was added, such that gilts were not lent at a rate below 0.25%. Since March 2009, the DMO has kept the rate under review, communicating updates to the Terms & Conditions following changes to the Bank of England’s Base Rate. The latest Terms and Conditions of the Facility can be found in the Money Markets publications section of the DMO website.
2 A Special Repo Facility, under which specific gilts were made available for borrowing for periods of 1 week at a time, and generally at a preferential rates compared to the Standing Repo Facility, operated from October 2008 to December 2008, and again from May 2009 to August 2009. The specific gilts eligible for this Facility, and the rates at which they could be borrowed, are detailed in the relevant prevailing Terms and Conditions documents, found in Money Markets publications section of the DMO website.
3 Further details on the Standing and Special Repo Facilities can be found in the DMO publication "A guide to the roles of the DMO and Primary Dealers in the UK government bond market".
4 In the event that the DMO has created stock under the standing or special repo facilities this report will be updated the following day.