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MNI UK Issuance Deep Dive: FQ3 Update: Can gilt market cope with QT?

  • The DMO released its FQ3 gilt operations calendar this morning. We update our UK Issuance Deep Dive document to review the new calendar. The main surprise was the shorter-than-expected time to maturity for the new 5-year gilt.
  • We look into how the gilt market will cope with active gilt sales, and what it will do to net issuance.
  • And with either of the candidates for next Prime Minister looking to increase fiscal spending, there is potential for issuance, particularly in November onwards, to increase even further – which could start to increase liquidity pressures and the functioning of the gilt market in our view.

MNI_UK_DeepDive_FQ3_Update.pdf

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