UK Sovereign
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The sterling public sector market was on pause this week as the UK parliament held a series of votes to determine the outcome of Brexit this week.
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The UK Debt Management Office (DMO) is forecasting £118.1bn of financing needs for 2019 to 2020, with almost 20% of that to come through syndicated bond sales.
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One of the biggest snowstorms to hit Ottawa in years could not stop Export Development Canada printing its largest ever deal this week, alongside a record three year book for the European Investment Bank (EIB) and a very healthy Bank of England (BoE) dollar deal.
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A strong start to the year for public sector dollar issuance is keeping up the pace so far this week, with last week’s slowdown during the Chinese New Year holidays only appearing to make investors hungrier. Both of Tuesday’s dollar deals were well oversubscribed — one spectacularly so — and there is a full card of issuers waiting to come on Wednesday.
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The Netherlands Development Finance Company (FMO) and the Bank of England hit screens with dollar mandates on Monday to start what should be a busy week of supply in the currency for public sector borrowers, according to bankers.
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It does not make sense for the UK Debt Management Office (DMO) to change its index for inflation linked bonds before the government has decided on its preferred measure of inflation, said market participants, responding to a report from the country’s politicians.
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The UK Debt Management Office showed no effects from the ‘noisy UK environment’ to comfortably conclude its 2018/19 syndicated programme on Tuesday. KfW will add to the sterling SSA supply this week after picking banks for its third benchmark in the currency this year.
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Gilt investors in Scotland last Friday called on the UK Debt Management Office to reduce the proportion of long end issuance in both conventional and index-linked formats in its next financial year.
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The UK Debt Management Office has appointed a four bank syndicate to run the final syndication of its 2018/19 financial year.
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The UK Debt Management Office has selected the week it will sell its final syndication of the year, a reopening of the 0.125% 2041 index-linked Gilt.