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Will volumes increase next week?

UK T-BILL AUCTION PREVIEW

This week's UK T-bill auction results will be released shortly after 11:00GMT and the DMO will simultaneously release the volumes for next week's operation.

  • Note, firstly, that this week's 6-month volume is a little lower than usual at GBP800mln rather than GBP1.0bln.
  • Also note that with the intended increase in T-bill stock in the upcoming fiscal year due to rise GBP23.2bln that would be more consistent with the auction sizes we had been seeing up until September (GBP500mln for 1-month, GBP1.0bln for 3-month and GBP1.5bln for 6-month).
  • The auction Friday next week will be the first of the next fiscal year, so we will be watching closely today to see if the amounts on offer will increase quickly, or if the DMO will delay increasing the size of bill auctions given the large cash balance it has to roll into the next fiscal year.

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