Gilts rally as Bank of England pauses bond sales - thetimes.com

UK government bonds, known as gilts, rallied after the Bank of England paused its programme of active gilt sales. The decision means the central bank is stepping back, at least temporarily, from actively reducing the stock of bonds it holds, a process often described as quantitative tightening. When the Bank refrains from selling, it removes a source of supply pressure from the market, which can support prices and nudge yields lower, as appeared to occur here.

The move matters because gilt yields feed directly into UK borrowing costs, mortgage pricing and the discount rates investors apply to equities. A pause can also be read as a signal about the Bank's appetite for tightening financial conditions while the economy remains fragile.

What to watch: the duration of the pause, any guidance on future sales, and incoming inflation and growth data. Together these will shape whether the rally proves durable or fades as policy expectations shift.