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Just a few thoughts...UK bill issuance next...>

GILTS
GILTS: Just a few thoughts...UK bill issuance next week is falling to GBP1.5bln.
- To put that into context, through most of last year T-bill auction sizes were
GBP3.5-6.5bln. In May auction sizes rose to a combined GBP9.0bln.
- The fact that bill issuance next week will be so low hints that the govt's
cash position is pretty good right now.
- Along with this morning's fiscal data does this mean that the UK fiscal
position is significantly better than expected? And following that logic, could
it mean that the DMO remit for August and beyond is smaller than the market
would otherwise expect? We will find out by 29 June...

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