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Week Ahead (2/2)

UK
  • The second major event of the week will be the Chancellor’s Spring Statement, alsoo on Wednesday (start time is normally around 12:30GMT).
  • He is likely to announce some limited fiscal stimulus targeted to help with what the press has dubbed the “cost of living crisis” as well as possibly some increases in military spending and levelling up.
  • The DMO will release the gilt remit and proposed calendar for the new fiscal year on Wednesday, too. We are still compiling our preview (it will be out tomorrow morning) but from nine GEMM estimates so far we have seen a range of estimates for gilt sales from GBP124.5bln (Citi) to GBP200.3bln (BNP) with the median at GBP155bln.
  • There is also an expectation that the target of T-bill stocks will be increased from somewhere between GBP5-30bln.
  • Note that the DMO has now completed gilt issuance for the current fiscal year.

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