U.K. Readies Bond Market Supply Hit as Decade of BOE Buying Ends
- Dealers see GBP152b of gilt sales for fiscal year 2022-23
- Scarcity of short-term debt has led to market distortions
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The U.K. is about to finance a year of spending without help from the Bank of England for the first time in over a decade.
The nation’s Debt Management Office is seen issuing 152 billion pounds ($201 billion) of gilts in the fiscal year from April, down from 195 billion pounds for the past year, a Bloomberg survey of 15 primary dealers showed. Investors could still be hit with a record volume of debt, once BOE action and redemptions are taken into account, Bloomberg Intelligence estimates using data going back to 1991.