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Rpt: MNI INTERVIEW: Gilt Sales Target Short-End Liquidity: DMO

(MNI) London
(MNI) London

UK Debt Management Office head Robert Stheeman says the government's fiscal package has seen the DMO revert to its Covid and GFC strategy of focusing on shorter term issuance.

The UK is again targeting the short-end of the sterling bond market curve to fund the additional borrowing required to cover the Government’s recent spending plans, taking advantage of the liquidity offered by in part by overseas investors, Debt Management Office head Robert Stheeman told MNI in an interview Friday.

The short-end of the curve is by far the most liquid, Stheeman said, helped by the fact that it attracts more foreign buyers. This makes it the focal point for locating sufficient demand when the DMO has to do a lot of borrowing quickly and revives plans used in response to both the global financial crisis and the pandemic, he added.

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The UK is again targeting the short-end of the sterling bond market curve to fund the additional borrowing required to cover the Government’s recent spending plans, taking advantage of the liquidity offered by in part by overseas investors, Debt Management Office head Robert Stheeman told MNI in an interview Friday.

The short-end of the curve is by far the most liquid, Stheeman said, helped by the fact that it attracts more foreign buyers. This makes it the focal point for locating sufficient demand when the DMO has to do a lot of borrowing quickly and revives plans used in response to both the global financial crisis and the pandemic, he added.

Keep reading...Show less