UK: So far, the Bank of England (BoE) has devoted some £175 billion to the Asset Purchase Facility program, mainly intended to buy gilts. As of now, £174.8 billion has been spent (£172.8 billion on gilts, equivalent to 13% of GDP) and expectations for the BoE minutes this Thursday (Nov 5
th) are that the program will be extended yet again, probably with another £50 billion. We believe such an extension will steady gilt yields and flatten out the yield curve, while sterling ought to lose some ground again.