1516 GMT - Yields on U.K. government bonds face upward pressure from the Bank of England's active gilt sales program, BNP Paribas group chief economist Isabelle Mateos y Lago said at the Bank of England Watchers' Conference. The BOE is more aggressive in its approach to quantitative tightening--whereby it sells gilts accumulated during previous periods of stimulus via bond purchases--than the U.S. Federal Reserve and the European Central Bank, Lago said. The BOE conducts active gilt sales, unlike it's U.S. and eurozone peers who only have a passive approach by allowing bonds that mature to roll off their balance sheets. The U.K. gilt market faces a premium from these active gilt sales, Lago said. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

May 12, 2025 11:16 ET (15:16 GMT)

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