MNI Gilt Week Ahead - January 25, 2021

• The calendar for the UK is a little sparse in the week ahead, with markets instead looking towards next week's MPC meeting which will see the review into negative interest rates published alongside (or within) the Monetary Policy Report. Note that our policy team released a story on Monday 18 January which stated that the review will likely state that negative rates are possible but that banks' antiquated IT systems would not be able to handle tiering in the near-term. Any further source-based news stories are likely to have the biggest potential to move UK markets this week. Of course, any new Covid-19 developments such as lengths of lockdowns or vaccine deployment have the potential to move markets too.
• The only scheduled appearance by an MPC member in the week ahead will be from Governor Bailey in a Davos panel on digital currencies today.
• In terms of supply, we note that this week will see the first new index-linked gilt launched since 2018. The DMO also confirmed on Friday that the syndicated linker launch scheduled for the week commencing 8 February will see a maturity of 22 March 2051.

See the link below for the full document including supply previews for the week ahead, QE tracker and BOE purchase analysis, cash flow matrix and issuance calendar:

GiltWeekAhead25012021.pdf