Investors are bracing for the UK government to increase its gilt sales in the coming financial year to historic levels, according to a Reuters poll of primary dealers.
Chancellor Jeremy Hunt is reportedly lining up a set of pre-election giveaways on Wednesday (6 March), including cutting national insurance by 2p, and is expected to unveil proposals for a historic bond issuance, excluding Bank of England transactions, for the fiscal year beginning in April. However, the Chancellor is also having to balance his tax cut ambitions with bond investor worries about the public finances. According to Reuters, prices of UK gilts have already fallen more than that of other countries, and there are substantial amounts of debt slated to enter the market. Fisca...
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