Expectations ahead of DMO calendar release at 7:30GMT

The DMO will release its January-March gilt issuance calendar at 7:30GMT this morning. We expect the following:

• Shorts: We expect the DMO to stick to benchmarks in this area. We look for the 0.125% Jan-26 gilt to be auctioned once more in January before a new Oct-26 gilt is launched in February and reopened in March. We expect the 0.125% Jan-24 gilt to be reopened once in each of January, February and March.
• Mediums: We look for the 0.125% Jul-31 gilt to be reopened three times in the January-March period with the 0.625% Jul-35 gilt to be reopened only twice. This leaves one auction unaccounted for and we think it could be any of the 0.125% Jan-28, 4.25% Jun-32 or 4.50% Sep-34 named by GEMMs and investors in the consultation this week.
• Longs: For the 25-30 year syndication in January we expect the DMO will favour the 25-year end of the range and look for a launch date of 19 January. On the auction side we look for three auctions of the 1.25% Oct-41 gilt, two auctions of the 0.50% Oct-61 gilt and one auction each of the 1.625% Oct-54 and the 1.625% Oct-71 gilts. We also expect a total of three auctions split between the 0.50% Oct-50 and reopenings of the new 25-30 year gilt.