Managers divided on gilt issuance

brown's response to gilts imbalance meets mixed reaction, although increased flexibility praised

Managers are divided on the impact of gilt issuance levels announced in last week's Budget, with views ranging from disappointingly timid to a well calculated response to shortages. Gordon Brown attempted to respond to the imbalance in the gilt market by announcing a long-term plan to increase the rate of issuance to satisfy current levels of pension fund-driven demand. Consequently, the Treasury has released plans for a minimum of 17 auctions of conventional gilts in 2006 and 2007, four in the one to seven-year maturity area, a minimum of four in the seven to 15-year category, and a mini...