UK Sovereign

France, Germany and Spain held well received auctions of medium to long term debt this week. Here is a round-up of key European sovereigns' funding figures.

The UK’s Debt Management Office (DMO) announced the mandate for a syndicated tap of 31 year inflation linked bonds on Friday, with the deal expected for the week beginning July 22. The DMO is expected to follow up with a new ultra-long inflation linked Gilt in the third quarter.

A growing bid among Asian institutional investors for UK sovereign debt is adding much needed liquidity to the market, according to the UK Debt Management Office.

The UK’s syndication of a 55 year Gilt on Tuesday exceeded expectations — attracting the third largest book ever on a UK syndication in the joint second fastest book build. The Dutch State Treasury Agency also enjoyed strong demand in an auction of five year bonds.

SSA bankers predicted that the week’s new issue supply could be confined to sovereign borrowers, as the volatility which engulfed markets late last week shows little sign of abating.

This week's funding scorecard focuses on some of Europe's key sovereigns. Next week's scorecard will offer an update on Spanish regions and gencies.

The UK’s Debt Management Office (DMO) has mandated banks to lead manage its long-expected ultra long Gilt syndication, scheduled for the week beginning June 24.

The United Kingdom’s Debt Management Office (DMO) is expected to extend its debt curve this month, selling an ultra long Gilt in order to tap into demand from pension funds looking to hedge their long term liabilities.

Gilt Edged Market Makers (GEMMs) and investors are urging the UK’s Debt Management Office (DMO) to extend the Gilt curve with a 50 year or longer deal. The minutes of the DMO’s latest consultation, released on Tuesday, suggest that such deal is more than likely to come this quarter.

The UK’s Debt Management Office (DMO) said on Wednesday it will cut its planned syndication volumes for financial year 2013-2014 by more than half as compared to the previous fiscal year. The issuer also announced a slightly smaller funding target in its financing remit for the new fiscal year which will begin in April.

The UK Debt Management Office reopened its 0.25% 2052 index linked Gilts to the tune of £3.75bn on Tuesday. Despite Moody’s downgrading the UK late last week and Europe’s debt markets being engulfed in volatility on Tuesday following the disappointing results to Italy’s government elections (see separate story), the DMO book build was a bun fight and the tap was priced flat to secondaries

The UK Debt Management Office should sail through its final syndication of the year on Tuesday despite Moody’s cutting the sovereign’s rating late last week, said SSA bankers and analysts. The Gilt market on Monday barely registered the downgrade.