DMO Plans Green Gilt In Jun-Sep; Qtly Consultation May 17

As reported in the 1536BST bullet, DMO is looking for one syndicated conventional gilt sale in the Jun-Sep period. And a possible new conventional Gilt sale in 15-22 year area or another maturity in late Jun/July.

• Our UK Deep Dive of Apr 30 noted: "We also think that there will be a long-dated conventional syndication held in September (we expect 21 September to be the most likely date).....One potential option will be for the new 15Y gilt that is expected to be launched in the quarter to be pushed into the long bucket and potentially given a Sep/Oct-36 maturity. Or potentially for the DMO to launch a current coupon gilt in the 2038-2040 area...The other options are to tap an existing gilt, look to launch a new current coupon gilt at the 45-year point of the curve or to extend the maturity profile of the gilt curve beyond 2071."
• Additionally, per DMO: "green gilt issuance is also a possibility in the June to September 2021 period". We noted in our Deep Dive that "new green gilts will also likely see syndicated issues, and we expect green issuance will be split evenly between each of the quarters with the first green gilt likely to launch via syndication in July" with a 20-25 maturity.
• DMO quarterly consultations w Gilt Market Investors to be held at 1530BST and for GEMMS at 1700BST on Monday May 17.