self-employed support scheme which for........>

GILTS: self-employed support scheme which for 3-months costs GBP10bln, small

business grant schemes at GBP15bln and an additional GBP9.5bln of NHS spending

not included in the Budget. These costings along with other already announced

policies since the Budget would increase spending by an more than GBP100bln

according to the OBR in its 3-month lockdown scenario. This doesn't take into

account the other knock-on effects to fiscal receipts from an economic slowdown

but does take into account a longer lock down than expected. Even so, we would

expect to see gilt sales rise to at least GBP200bln, probably closer to

GBP230bln.

- The larger 25% PAOF size will likely be maintained - something that has seen

decent take-up. In April so far (with 4 auctions still due next week) GBP45.6bln

has already been raised in cash terms including GBP6.0bln from the PAOF (so the

GBP45bln target has already been reached).

- The DMO has already announced it intends to hold two syndications in May. One

of these will be a conventional long, and one will be the launch of the new

10-year gilt - the first syndication of a medium-dated gilt. (2/2)