UK DMO smashes Gilt records thanks to BoE backing

By Lewis McLellan
14 May 2020

The UK Debt Management Office launched its first bond syndication of the new financial year on Tuesday, smashing all previous records for deal and order book size and making a healthy start on its largest ever borrowing programme in response to the coronavirus pandemic. Despite the huge size, the deal caused “barely a ripple”, thanks to the support of the Bank of England’s asset purchase facility.

The syndication was absorbed remarkably well, given the size,” said Aaron Rock, investment director at Aberdeen Standard Investments. “It really went incredibly smoothly. To absorb that amount of duration in one go with barely a ripple is impressive.”

The DMO printed £12bn with its first ever new 10 ...

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