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DMO Consultation Results Largely In Line With MNI Expectations

GILTS

Some highlights of DMO's Gilt Market consultation on Aug 23 (the official record was released today):

  • Participants favoured a 10-12Y initial Green issuance in September, with a 20-30Y maturity Green follow-up in October - in line with our expectations.
  • Some advocated a launch of a new 2032 maturity Gilt to become the next 10Y benchmark. As we noted in our Deep Dive, we favour a Jul-32 maturity.
  • Some favoured a new ultra-long linker (2071-74 maturity), others a re-opening of the 2051 linker, and some investors wanted a new 40Y maturity linker. MNI looks for a long-dated linker syndication to be held on 23 November.
  • The issuance calendar for the Oct-Dec period will be published at 7:30BST on 31 August.

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