Supply of UK gilts set to keep up with demand

There are few concerns over the supply of UK gilts during the current financial year as the Governme...

There are few concerns over the supply of UK gilts during the current financial year as the Government has announced a gilt issuance package of approximately £23bn for 2002/2003, all of which demand will easily meet. The issuance package is spread over the width of the yield curve. However, a key question the market is pondering is whether there will be additional issuance over and above that. Philip Laing, investment director at Standard Life, says: 'Debt issuance is projected to increase markedly from the recent situation where the gilt market has been a net re-payer of debt. Gr...