DMO consultations today and Friday calendar will be the highlight

The most interesting feedback in today's DMO consultation will be regarding
the launch of a new 15-year gilt via syndication. We had noted
in last week's Gilt Week Ahead that the only area of the curve that didn't
have a substantial benchmark was the 15-year area. However, the
15-year area also does not see the most natural demand in the UK
historically, being a bit too long to see large numbers of foreign
investors generally interested but too short for large demand from
pension funds. At this point we would still expect there to be enough
support for the 15-year syndication to go ahead but we think that it might
not be on the scale of the syndicated launches in May and June.

A new Jan-24 gilt will be less controversial and would be eligible for the BOE's
APF scheme for the first few months of launch. But we think there may be scope
to push the launch of a new 10-year gilt back to January and continue to build
up the 0.375% Oct-30 gilt through the September to November period.
For the full document click here.