November 12, 2024 08:31 GMT
GILT AUCTION PREVIEW: DMO Consultation I/L Syndication Findings
GILT AUCTION PREVIEW
The DMO has released the minutes of yesterday’s consultations with gilt market participants. The findings surrounding syndication preferences are outlined below, we will provide further colour in upcoming posts:
Index-linked
- The launch of a new index-linked gilt maturing in 2043 was the most frequently recommended by GEMMS. However, “a number of participants also favoured the launch of a new IL 2049 with a few GEMMs being indifferent between the two maturities.” The DMO also noted “isolated calls for the re-opening via syndication of a new index-linked gilt maturing in 2038 and for an index-linked gilt maturing in either 2059 or 2060.”
- Investors showed similar preferences, favouring index-linked gilt maturing in either 2043 or 2049, with only isolated calls for other maturities, including a new 15-year maturity index-linked gilt
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