UK Sovereign

The International Development Agency sold a sterling benchmark on Wednesday, raising £1bn with its second benchmark in the currency.

The UK Debt Management Office has picked the banks to lead the launch of a new long-dated index-linked Gilt, which will be the final syndicated transaction of its 2020/21 financial year.

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The UK Debt Management Office has appointed two banks as structuring advisers for the sale of its inaugural green Gilt, due to be issued this year.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, January 25. The source for secondary trading levels is ICE Data Services.

Rating: Aa3/AA/AA-

The UK Debt Management Office launched a new 25 year line on Tuesday, raising £6.5bn. The DMO also published the minutes of its call with investors and Gilt-edged Market Makers on Monday, revealing strong appetite for inflation-linked products.

The UK Debt Management Office has chosen the banks to lead the sale of a new 25 year conventional Gilt via syndication, following support for this maturity by Gilt-edged Market Makers (GEMMs) and investors in a consultation at the end of November.

The UK Debt Management Office has responded to a letter from the chair of Parliament’s Treasury Select Committee Mel Stride, questioning whether the DMO’s syndications were priced to obtain the best value possible for the taxpayer.

The looming threat of a no deal Brexit, as well as the chaos ensuing from the UK’s new stricter restrictions to combat Covid-19, caused Gilt yields to plunge on Monday morning. Unless EU and UK politicians are able to come to agreement on a trade deal soon, negative rates look almost inevitable.

As Boris Johnson embarks on a green industrial revolution, he has happened upon one of those rare moments when government policy seems completely aligned with investor appetite. The UK must use this capital markets sweet spot to transform its energy infrastructure next year and beyond.

Capital markets professionals are resigned to a no-deal Brexit, after UK prime minister Boris Johnson and EU Commission president Ursula von der Leyen failed to find a way through an impasse in trade negotiations over dinner on Wednesday. Equities are set to suffer the most, and the ability of UK companies hurt by Covid-19 to raise capital is now in serious doubt. Sam Kerr, Lewis McLellan and Mike Turner report.