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More on the FY24/25 remit

GILTS
  • As we noted above, slightly more medium issuance than the median expectation (but had been thought to be longs originally and saw a steepening of 10s30s). Shorts, mediums and longs broadly in line with expectations.
  • Number of syndications same as in 2023/24. There were some expectations the number might be reduced but we still have 4 conventional longs and 3 linkers. However, the big surprise is that there is GBP8.5bln allocated to medium syndications and GBP13.5bln to long conventionals. We hadn't seen anyone note any expectations of medium-dated syndications in the run-up to the remit release.
  • The bills programme also was a bit of a surprise. There is zero contribution from bills to the financing in FY24/25. There was a unanimous expectation amongst the previews that we read that the stock of bills would be increased (by a median of GBP10bln).
  • The unallocated portion of the gilt remit at GBP10bln was marginally lower than expected.
  • Green gilt issuance to remain at GBP10bln - in line with our expectations and in line with with FY22/23 and FY23/24.
  • No changes to the PAOF procedures (broadly expected, there was an outside chance of the PAOF being introdced for green auctions).
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  • As we noted above, slightly more medium issuance than the median expectation (but had been thought to be longs originally and saw a steepening of 10s30s). Shorts, mediums and longs broadly in line with expectations.
  • Number of syndications same as in 2023/24. There were some expectations the number might be reduced but we still have 4 conventional longs and 3 linkers. However, the big surprise is that there is GBP8.5bln allocated to medium syndications and GBP13.5bln to long conventionals. We hadn't seen anyone note any expectations of medium-dated syndications in the run-up to the remit release.
  • The bills programme also was a bit of a surprise. There is zero contribution from bills to the financing in FY24/25. There was a unanimous expectation amongst the previews that we read that the stock of bills would be increased (by a median of GBP10bln).
  • The unallocated portion of the gilt remit at GBP10bln was marginally lower than expected.
  • Green gilt issuance to remain at GBP10bln - in line with our expectations and in line with with FY22/23 and FY23/24.
  • No changes to the PAOF procedures (broadly expected, there was an outside chance of the PAOF being introdced for green auctions).