MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI: ECB CUTS KEY DEPOSIT RATE BY 25 BP TO 3.0%

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

MNI China Daily Summary: Thursday, December 12

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI: CANADIAN OCT BUILDING PERMITS -3.1% MOM

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

DMO Consultation Minutes: Mediums

GILTS
  • There are 7 remaining medium auctions (1 already announced, 1 additional on 19 December, 5 in FQ4) with GBP24.6bln still due to be raised (GBP68.3bln target).
  • New 7-year gilt: GEMMs "widely favoured" a new 2031 gilt while there was "strong support" for a 2031 gilt from investors. In MNI's view, the most obvious maturity would be October 2031 (as this is around middle of the current coupon gap).
  • 4.625% Jan-34 gilt: "Almost all" GEMMs recommended the additional auction on 19 December to see a reopening of the 4.625% Jan-34 gilt, and it was "widely recommended" by investors. GEMMs then "very widely recommended" 3 reopenings of the gilt in FQ4 (with a minority of GEMMs supporting 4 reopenings in FQ4). Prior to the consultation, MNI had expected 2-3 reopenings (but we now expect 3 based on the consultation responses). Investors showed strong support for reopenings.
  • 3.75% Jan-38 gilt: MNI expects one reopening of the 3.75% Jan-38 gilt. There was "strong support" for a reopening from investors and GEMMs while there was "some support" from GEMMs for a second reopening.
  • 0.875% Jul-33 Green gilt: There were only isolated calls from GEMMs (and no mention from investors) about the 10-year Green Gilt. Ahead of the consultation agenda, MNI had expected one auction but we now think it's more likely that we see three openings of the 4.625% Jan-34 gilt (along with one each of the new 7-year gilt and the 3.75% Jan-38 gilt).
  • FQ4 auction dates: 04-Jan, 17-Jan, 14-Feb, 28-Feb, 13-Mar
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.