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Hammond Seen Cutting Gilt Sales to Decade-Low in First Budget

  • Issuance to ‘fall dramatically’, support long-dated gilts: RBC
  • Hammond to keep his powder dry amid Brexit uncertainty: Citi
Bloomberg business news

Berenberg Says U.K. Economy Faring Better Than Expected

U.K. Chancellor of the Exchequer Philip Hammond may deliver a boost for bondholders in his first budget, with analysts forecasting gilt issuance in the next fiscal year at its lowest since the financial crisis a decade ago.

The Debt Management Office will sell 109.7 billion pounds ($134 billion) of gilts in the year starting April, compared to 146.5 billion pounds in the current fiscal year, according to the median prediction of 14 primary dealers surveyed by Bloomberg. With Britain’s economic data beating expectations since the decision to leave the European Union, analysts see improved growth projections, reducing the need to borrow in Wednesday’s budget.