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.