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WEEK AHEAD: Without a shadow of a doubt the...>

GILTS: WEEK AHEAD: Without a shadow of a doubt the highlight of the week ahead
for the gilt market will be the release of the new gilt remit on April 23 which
will cover fiscal 2020/21. This will not be accompanied by new OBR forecasts but
will nevertheless take into account at least some estimates from the government
and DMO on the cash requirements of the currently announced coronavirus fiscal
measures. Note that the coronavirus measures released in the March Budget were
finalised too late to be included in the current remit. Irrespective of the
total remit for the fiscal year, we would expect the April pace of GBP45bln of
issuance per month to be maintained at least through May and June, and
potentially longer. We would also expect extra issuance to be heavily skewed
towards nominals rather than linkers. Note also that 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.

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