The DMO always has scope to change the........>

GILTS: The DMO always has scope to change the remit at any point without a new

CGNCR forecast. Almost certainly, the OBR did not include the coronavirus

stimulus package in its forecasts as they were prepared in advance of the

stimulus decisions being decided.

- CGNCR is based on the OBR forecasts so there is a chance that the gilt remit

could be revised higher (or lower) at a later date.

- The DMO does include some provision for unexpected fiscal developments in its

remit normally, so it is unlikely the whole stimulus package cost will need to

be added to the gilt remit, but it could still be noteworthy.

- As noted earlier, gilts have rallied on the back of the remit announcement but

if the market becomes concerned that the remit will be revised higher, this move

could easily be reversed.

- To remind, the CGNCR will not be automatically revised this Friday in updated

numbers from the OBR.