UK Sovereign

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.

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.

A shock result in the UK general election on Thursday had little effect on the Gilt and sterling SSA market on Friday, leaving the door open for any issuers considering deals next week, said bankers. The medium term picture may be harder to glean, however, with sterling’s fall against the dollar potentially impacting the cross currency basis swap between the two.

Public sector borrowers are considering sterling deals next week — but any issuance will hinge on the result of the UK’s general election on Thursday. The vote will also have a large bearing on Gilt yields, said analysts.

The UK Debt Management Office (DMO) is keeping its options open on a planned syndication for September, as Gilt yields fell following polls showing the opposition Labour Party was gaining ground on the ruling Conservatives ahead of next week’s UK general election.

The UK Debt Management Office is keeping its options open on a planned syndication for September, a deal some investors feel the sovereign should use to push its conventional curve out to 2072. Meanwhile, a French agency is bringing its first syndication in sterling for over two years.

Investors have called on the UK Debt Management Office to extend its conventional curve with a syndication in September — although the view is far from unanimous.