(2/2) Auction sizes: Most GEMMs and...........>

GILTS: (2/2) Auction sizes: Most GEMMs and investors preferred an increase in

average auction size to accommodate increased issuance rather than an increase

in the number of auctions. GEMMs also discussed existing auction formats with

some favouring increased sizes of PAOF or an increased window in which the PAOF

could be exercised, and some mentioning increasing the GEMM non-competitive

allocation.

Auction vs syndication: Most investors prefer auctions and would prefer to have

syndications more focused on long conventional rather than index-linked

issuance. Investors at the Edinburgh meeting in particular suggested more

syndications overall with a greater emphasis on long and ultra-long maturities.

Demand for longs/ultra-longs: Investors in Edinburgh noted a shift in demand for

duration towards shorter durations in longs. However, they also noted that there

was significant demand for ultra-longs pointing to the continued de-risking of

the pension industry and the inversion of the yield curve at the ultra-long end.

Green bonds: A few GEMMs noted increased demand for green government bonds among

their investors.