UK Budget Preview: MNI Sees Risk Of Reduction In FY2018-19 Net Financing Requirement. MNI Poll Shows Gilt Issuance Likely To Reduce From GBP106bn To GBP100.3bn

Forecaster Previews

Barclays: The strength of receipts taken by the Government relative to OBR forecasts means that a reduction in the FY 18-19 net financing requirement is likely. We project a total net financing requirement reduction of £7.5bn, split between a £4bn reduction in planned T-bill stock and £3.5bn from lower gilt sales. Our central expectation is that this reduction will come from currently unallocated gilt sales, which currently total £3.6bn to plan. This implies a relatively small Q1 19 linker syndication. We do not expect a material change in the projected medium-term financing requirement.

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