UK Sovereign

The UK Debt Management Office (DMO) announced on Wednesday that it will hold two long end syndications in the fourth quarter of 2016, in response to calls from Gilt-edged market makers and investors.

Gilt-edged market makers and investors are calling for the UK Debt Management Office to sell a long dated conventional syndication in October and follow it with an index-linked deal in November.

Gilt-edged market makers and investors are calling for the UK Debt Management Office to sell a long dated conventional syndication in October and follow it with an index–linked deal in November.

The Bank of England’s Gilt buying programme ran into difficulties on Tuesday, securing only £1.12bn — £50m short of its target — despite offering to pay well over market value.

Since the August 4 announcement that the Bank of England will purchase corporate bonds again, much chin stroking has occurred about the differences between the Bank’s approach and that of the European Central Bank. In at least one respect, though, the BoE's scheme seems superior.

A bigger than expected push towards monetary easing by the Bank of England on Thursday sent Gilt yields to new record lows, but unfavourable basis swap rates and a rampant dollar market means an uptick in arbitrage funding in sterling by public sector borrowers is unlikely, said bankers.

GlobalCapital is pleased to announce the preliminary shortlist of nominees for its Global Derivatives Awards 2016. Nominations are based upon market feedback and research conducted in recent months. Winners will be unveiled at a gala dinner in London in September.

Mizuho Financial Group is to establish a consolidated vanilla derivatives platform in London by combining Mizuho Capital Markets, a derivatives business, with Mizuho International, its securities and investment banking arm.

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Intercontinental Exchange has appointed a founding member of the Bank of England’s Monetary Policy Committee as a director of ICE Benchmark Administration.

Uncertainty over the UK’s future following its vote to leave the European Union and the loss of its last triple-A rating failed to make any dent in demand for the first Gilt syndication since Brexit. Instead, the only real effect was the rock bottom yield at which the sovereign was able to issue.

The Gilt market on Tuesday once again highlighted its immunity to concerns around the UK's vote to leave the EU, as the Debt Management Office conducted a trademark smooth execution with a tap of its 0.125% November 2065 inflation-linked bond.