UK Sovereign

The UK Debt Management Office has selected the banks that will run its next syndication.

The UK Debt Management Office looks likely to bring a new index-linked Gilt in the 30 year area of the curve in November after investors and banks both called for the issue. That came as the DMO firmed up plans for its next syndication, in September.

Gilt yields dropped on Thursday after the Bank of England’s Monetary Policy Committee voted 6-2 to hold the Bank Rate at 0.25% — a higher majority than the 5-3 in favour of holding at its last meeting in June. The more dovish result came after weeks of hawkish noises emanating from the central bank. Meanwhile, the Province of Alberta returned to the sterling market to tap its debut issue from earlier this year.

Gilt yields dropped on Thursday after the Bank of England’s Monetary Policy Committee voted 6-2 to hold the Bank Rate at 0.25% — a higher majority than the 5-3 in favour of holding at its last meeting in June. The more dovish result came after weeks of hawkish noises emanating from the central bank.

The European Investment Bank (EIB) and other market actors are working on a system to match investors’ views on what is a ‘green’ bond with suitable deals in the market.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

United Kingdom

The UK Debt Management Office broke yet another record on Tuesday, building its largest ever book in cash terms for an inflation-linked syndication. The demand was such that the bond then tightened in secondary to move past the fair value level at the book open, said one of the leads.

The UK Debt Management Office broke yet another record on Tuesday, building its largest ever book in cash terms for an inflation linked syndication. The demand was such that the bond then tightened in secondary to move past the fair value level at the book open, said one of the leads.

The sterling market for public sector borrowers has trundled back into gear after the shock UK election result on June 8. A series of issuers printed through this week, while the UK Debt Management Office announced its plans for the second syndication of the 2017-18 financial year.

The UK Debt Management Office has selected the bond to be issued at the second syndication of its 2017-18 financial year, picking a bond at the long end of its target range.

In contrast with its US counterpart this week, the Bank of England elected to keep its base interest rate on hold at 0.25% at its meeting on Thursday. However, the vote was closer than expected and the circling hawks caused a sell-off in Gilts and may have spoiled the outlook for sterling borrowing.