[Bank of England to Lend Purchased Government Bonds to Ease Liquidity Pressures in Bond Market] On November 10th, Jinshi Data reported that the Bank of England and the Office of Debt Management (DMO) reached an agreement under which the Bank of England will provide the DMO with a large amount of UK government bonds purchased through its Asset Purchase Facility (APF), enabling the DMO to lend these bonds to the market through normal repurchase market operations. The DMO can provide these bonds to existing repurchase counterparties through repurchase transactions, subject to existing terms and legal agreements; the specific terms of these arrangements are not affected by this agreement. The amount of each bond available for lending will be at least 10% of the APF's holdings of that bond; a higher percentage can be provided if the APF's holdings exceed 50% of the freely tradable amount. Furthermore, the Bank of England is prepared to allow the DMO to use the bonds held by the APF in the Standing Repurchase Facility and related special facilities for specific government bonds, subject to relevant terms and conditions. This arrangement aims to alleviate potential obstacles to the operation of specific government bond markets that may arise from the Bank of England's bond-buying operations. The Bank of England previously stated in a market announcement on March 5, 2009, that it would study the feasibility of lending the bonds purchased through the APF. The DMO will lend these government bonds only for short periods, with a maximum term of one week. In exchange for borrowing the government bonds held by the APF, the DMO will deliver an equivalent amount of UK government securities to the Bank of England to ensure that the total amount of UK government securities held by the APF remains unaffected. This arrangement will not have a net impact on the DMO's cash management and will be implemented from 7 August 2009.