WEEK AHEAD: It will be a busy week in gilt....>

GILTS: WEEK AHEAD: It will be a busy week in gilt markets with the BOE due to

come to the market to buy gilts every day except Friday. The final GBP5.1bln of

reinvestment from the 4.75% Mar-20 gilt will be followed up by three days of

GBP3.0bln purchases Tues-Thurs.

- There is no issuance due in gilt space next week but T-bills are set to be

offered in the same volume as this week. Note that the 3-month auction was

uncovered - only the third uncovered UK T-bill auction since DMO records began

in 2001.

- The key data release for the gilt market will be the Markit flash PMI print on

Tuesday. This will be the first UK data release to reflect the period in which

Covid-19 has entered Europe.

- The DMO announced on the morning of Friday 20 March that the gilt remit would

be updated to include the Covid-19 stimulus measures following the 2019/20 CGNCR

outturn, with the updated remit published on 23 April. However, after the

additional fiscal stimulus and support for businesses announced by Chancellor

Sunak, the DMO may need to raise money even earlier and not be able to wait.