U.K. Bonds Set for Boost as Borrowing Seen Falling to Decade Low
- Survey of primary dealers sees issuance at 98.2 billion pounds
- Gilts may outperform bunds, Treasuries in near term: NatWest
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U.K. government bonds will get a boost with supply set to drop to its lowest in over a decade following this week’s Spring Statement.
The Debt Management Office will slash its issuance target for the 2018-2019 fiscal year by 16.9 billion pounds ($23.4 billion) from 115.1 billion pounds in 2017-2018, according to the median forecast of nine primary dealers surveyed by Bloomberg. Even as global yields continue to rise against an improving economic backdrop, the decline in supply means gilts will outperform German and U.S. debt in the short term, according to NatWest Markets.