The Treasury has made £65 billion from the quantitative easing programme to date. No wonder the Government wants to do some more.

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I thought I should draw attention to a curious little feature of the annual accounts of Bank of England Asset Purchase Facility Fund Limited, just published. This is the balance sheet:

Note 5 shows this:

So, the company was lent £445 billion  by the Bank of England to buy bonds.

It spent £10 billion on corporate bonds and has lost a little as a result.

It spent £435 billion on government bonds and they're now worth £500 billion (near enough).

What this means is that the Bank of England has made £65 billion by buying the government's own debts and holding them as rates have fallen. And as the balance sheet shows, all that money is due back to the Treasury.

Bizarrely, quantitative easing has been profoundly profitable for HM Treasury. Whoever knew that owing your own debt could be such a good thing to do?