Fewest bonds since downtime in 2018/19 will be sold by Great Britain

Fewest bonds since downtime in 2018/19 will be sold by Great Britain

The UK authorities are going to sell the fewest bonds since the financial downtime in 2018/19, probably worth less than 100b pounds, as a Reuters survey of primary dealers uncovered on Monday.

The outcomes emerged a day before Philip Hammond, finance minister rolled out a half-yearly update on the public finances. He told he would keep to a plan with the aim of cutting the country's relatively high debt levels.

The country’s budget deficit has probably declined to approximately 2% of annual economic output by March 31 that would be its lowest outcome since 2002 and versus 2010 it lost 10%, when most government departments started reducing spending.

In 2018/19, the United Kingdom’s on the verge of issuing approximately 100.7 billion pounds versus the Debt Management Office's remit of about 115.1b pounds in the current financial year.  That’s what the median prediction in the survey of 15 primary dealers revealed.

Estimates varied from 107.5 billion to 90.2 billion pounds. As seven primary dealers suggested, 2018/19 gilt issuance would be under 100 billion pounds. Such an outcome would be first since 2007/08.

Public sector net borrowing for 2018/19 is generally expected to decline to 33.3 billion pounds versus an estimate of 39.5 billion revealed in November by the Office for Budget Responsibility. In cash terms, it would be the lowest result since 2002/03.

Primary dealers appear to be financial institutions, which purchase gilts right from the UK government for the purpose of selling them on, thus assisting in creating a liquid market.

The country’s overall public sector net debt without state-owned financial institutions, although with  temporary Bank of England lending to the banking sphere – managed to total approximately 1.74 trillion pounds in January, which is 84% of GDP as well as more than double its value before the downtime.

 

 

Similar

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

Latest news

Bank of Canada Surprises Markets
Bank of Canada Surprises Markets

The CAD is dominating the markets after the key rate increase! Read the full report to learn more about trading opportunities with the Canadian Dollar!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera