The Bank of England is keeping its benchmark interest rates unchanged for the time being, and it says it’s changing the way it would change the way it reduces its holdings of government bonds at a time when gilt yields have risen to multidecade highs, including pausing auctions of those bonds until next year.

The BOE is doing this in part because gilt yields are at multidecade highs. Those highs also mean that the market prices for the gilts are at multidecade lows. Which creates the opportunity.

Instead of pausing its auctions, or perhaps in conjunction with them, the BOE might take advantage of those near historic low prices and buy back a passel (to use the technical term) of the gilts, particularly those with the longest time yet remaining to maturity, and retire them.

Of course, that would have its maximum effect only if the British government were to get its fiscal house in order and cut out its addiction to spending like there’s no tomorrow, which there won’t be if the government doesn’t. That, though, is another story.