Today the DMO will hold its quarterly.........>

GILTS: Today the DMO will hold its quarterly consultation with investors and

GEMMs to discuss April-June issuance. The consultations will take place via

conference call rather than in person due to the coronavirus.

- One of the biggest issues for discussion will be whether there is demand for

the DMO to launch a new conventional gilt with a 2-3 year maturity. We note that

there are 15 planned short-dated auctions in the fiscal year, so there could

easily be room for another gilt to be issued once a quarter, if not more. This

gilt is likely to have a January 2023 maturity. In addition, a new benchmark

5-year gilt maturing in January 2026 is likely to be launched.

- For mediums, a new 10-year gilt is likely to be launched in FQ1. There are

three scheduled medium auctions and they could all be for the new gilt as the

current benchmark 0.875% Oct-29 gilt is already at benchmark size.

- There are three long and two linker auctions in the quarter. We expect a long

conventional gilt to be syndicated on 19 May (subject to the coronavirus

situation at the time).