(1/2) On Friday and Monday, the DMO...........>

GILTS: (1/2) On Friday and Monday, the DMO conducted its annual financing

consultation ahead of the 2020/21 fiscal year. The following views were

expressed:

Linkers: GEMMs considered linker supply in absolute level could be relatively

unch. vs 2019/20 but in proportional terms would fall. Investors also expect the

proportion of linkers to fall. There were also concerns among all parties about

the RPI consultation outcomes. There was some support for CPI linked bonds among

both investors and GEMMs while investors also mentioned the possibility of SONIA

linked bonds.

Conventionals: GEMMs looked for the proportions of short- and medium-dated

issuance to be largely unch but the proportion of long-dated issuance to

increase to compensate for the loss of duration. There was less of a consensus

on whether short/medium/long proportions should increase among investors,

although there were concerns about liquidity in medium-dated gilts, largely due

to BoE purchases through the APF.