Since QE began in early 2009, UK gilts in issue have increased from £600 billion to £1.6 trillion. Bank of England holdings have increased from zero to £400 billion accounting for 25% of all gilts in issue. BoE holdings peaked at almost 30% of total holdings in 2012. Overseas holdings of gilts, have doubled from £200 billion to £400 billion. In the most recent period, overseas holdings have fallen to 25% of all gilts in issue, compared to an historical average of 30%. UK institutional holdings of gilts have increased from £400 billion to £800 billion accounting for 50% of all gilts in issue. Holdings of gilts by pension funds and insurance funds have increased from just over £200 billion to almost £500 billion. As a share of total gilts in issue, pension fund and insurance company holdings have been steady at around 28% over the six year period. Other UK financial institutions have seen a fluctuation in holdings with some suggestion of “front running” i.e. buying gilts ahead of the Bank of England purchase programme to benefit from rising prices. in the initial stages. In fact, all major stakeholders in gilts have increased holdings over the five year period. This raises an interesting question about from whom has the Bank of England bought gilts as part of the QE process? Only in the very early stages of QE is there evidence of purchased from the private sector (note 7). In reality it would appear the Bank of England purchases gilts from the Debt Management Office and not from financial institutions. Asset values are guaranteed by Treasury. JKA Dividends, yields and coupons are also returned to Treasury, which effectively enables the government to finance borrowing with a Dire Straits underpin “Money for nothing - Gilts for Free.”

1. Data : Debt Management Office : Historical Gilt Holdings Data
Analysis of UK Gilt Holdings 2009 - 2015
November 2015

2. Data : Debt Management Office : Historical Gilt Holdings DataNovember 2015
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data
• 1 Since QE began in early 2009, UK gilts in issue have increased from £600
billion to £1.6 trillion.
• 2 Bank of England holdings have increased from zero to £400 billion
accounting for 25% of all gilts in issue. BoE holdings peaked at almost 30% of
total holdings in 2012.
• 3 Overseas holdings of gilts, have doubled from £200 billion to £400 billion. In
the most recent period, overseas holdings have fallen to 25% of all gilts in
issue, compared to an historical average of 30%.
• 4 UK institutional holdings of gilts have increased from £400 billion to £800
billion accounting for 50% of all gilts in issue.
• 5 Holdings of gilts by pension funds and insurance funds have increased from
just over £200 billion to almost £500 billion.
• 6 As a share of total gilts in issue, pension fund and insurance company
holdings have been steady at around 28% over the six year period.
• 7 Other UK financial institutions have seen a fluctuation in holdings with some
suggestion of “front running” i.e. buying gilts ahead of the Bank of England
purchase programme to benefit from rising prices. in the initial stages
• 8 In fact, all major stakeholders in gilts have increased holdings over the
five year period.
• 9 This raises an interesting question about from whom has the Bank of
England bought gilts as part of the QE process?
• 10 Only in the very early stages of QE is there evidence of purchased
from the private sector (note 7).
• 11 In reality it would appear the Bank of England purchases gilts from the
Debt Management Office and not from financial institutions. Asset values
are guaranteed by Treasury.
• Dividends, yields and coupons are also returned to Treasury, which
effectively enables the government to finance borrowing with a Dire Straits
underpin “Money for nothing - Gilts for Free.”

3. 0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2009 2010 2011 2012 2013 2014 2015
UK Total Gilt Stocks
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Data : Debt Management Office : Historical Gilt Holdings Data£ Million

4. 0
100,000
200,000
300,000
400,000
500,000
2009 2010 2011 2012 2013 2014 2015
Bank of England Holdings UK Gilts
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data£ Million

5. 0%
5%
10%
15%
20%
25%
30%
2009 2010 2011 2012 2013 2014 2015
Bank of England Holdings of UK Gilts %
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data

6. 0
100,000
200,000
300,000
400,000
500,000
2009 2010 2011 2012 2013 2014 2015
Overseas Holdings UK Gilts
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data£ Million

7. 20%
25%
30%
35%
2009 2010 2011 2012 2013 2014 2015
Overseas Holdings of UK Gilts %
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Data : Debt Management Office : Historical Gilt Holdings Data

8. 0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2009 2010 2011 2012 2013 2014 2015
UK Financial Institutions Holdings UK Gilts
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Data : Debt Management Office : Historical Gilt Holdings Data£ Million

9. 30%
40%
50%
60%
2009 2010 2011 2012 2013 2014 2015
UK Financial Institutions Holdings of UK Gilts %
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Data : Debt Management Office : Historical Gilt Holdings Data

10. 0
100,000
200,000
300,000
400,000
500,000
2009 2010 2011 2012 2013 2014 2015
Pension Funds Holdings UK Gilts
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data£ Million

11. 0%
10%
20%
30%
40%
2009 2010 2011 2012 2013 2014 2015
Pension Funds Holdings of UK Gilts %
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data

12. 0
36,000
72,000
108,000
144,000
180,000
2009 2010 2011 2012 2013 2014 2015
Other UK Financial Institutions Holdings UK Gilts
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data£ Million

13. 0%
5%
10%
15%
20%
25%
2009 2010 2011 2012 2013 2014 2015
For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data
Other UK Financial Institutions Holdings UK Gilts %

14. 10 year Gilt Yields Qtr Basis %
For more information - Check out The Saturday Economist .com
Data : Bank of England
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015

15. For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data
Data Set £ millions

16. For more information - Check out The Saturday Economist .com
Data : Debt Management Office : Historical Gilt Holdings Data
Data Set £ millions

17. Data : Debt Management Office : Historical Gilt Holdings Data
The Analysis of UK Gilt Holdings 2009 - 2015
November 2015
QE in the UK