UK Sovereign
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◆ Large deal kickstarts FY 2025-26’s linker programme ◆ Shorter maturity caters to investor demand ◆ ‘Consistent, business-as-usual approach’ celebrated by markets -
'Modestly-sized' long conventional Gilt followed market feedback
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◆ 'Modestly-sized' first syndication for FY 2025-26 ◆ Size balanced for secondary performance and liquidity ◆ DMO aims for consistency and predictability
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UK government has a £4.9bn higher net financing requirement
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Shift to shorter Gilts as UK gets ready to borrow £304bn in 2025-26
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Borrowing task is second largest ever after Covid response
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The sovereign has raised more than £59bn from syndications in this financial year
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◆ Fair value calcs far from straightforward ◆ Largest book for index-linked Gilt offering ◆ Less index-linked issuance in 2025-26?
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Other markets overshadow labelled public sector issuance in sterling
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Choice of 10 year tenor key to success, says DMO
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◆ Record book and deal size ◆ Investor demand 'at odds' with media headlines ◆ Key BoE actor clears up position
