U.K. Gilt Investors Want to Postpone Next Month's Syndication, DMO Says

U.K. gilt investors and dealers want the government to delay an offering of bonds through banks planned for next month, the Debt Management Office said.

A sale of conventional bonds through a syndicate of banks near the end of October was “widely seen as the preferred operation,” with the existing securities maturing in 2040 and 2060 most commonly mentioned candidates, the London-based debt agency said today in the minutes of a meeting held yesterday.

A number of dealers also suggested that the next syndicated offering be of inflation-linked securities and come in October or November, the DMO said. This could be done through a reopening of bonds maturing in 2040 or 2042, the dealers told the debt office.

The debt office reduced the amount of bonds it’s planning to sell in the fiscal year through March to 165 billion pounds ($254 billion) after Chancellor of the Exchequer George Osborne unveiled his emergency budget in June and pledged to cut spending.

To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net

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