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