Photographer: Simon Dawson/Bloomberg

Why the BOE Overpaying for QE Bonds is Not Necessarily a Bad Thing

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Nobody likes paying over the odds for something, right? Well maybe it has its upsides when it comes to the Bank of England's government bond purchases.

The BOE paid a premium for all the long-dated gilts bought at an operation on Tuesday after it drew offers of just 1.5 times the amount sought. The bank is buying 1.17 billion pounds ($1.5 billion) of the bonds each week under its new QE program, part of a package of measures designed to combat the economic fallout of Brexit.

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