LONDON (Reuters) - Britain's Debt Management Office said on Tuesday it would transfer the remaining unallocated portion of its 2016/17 gilt issuance remit to short- and medium-dated gilts ahead of the close of the current financial year.
The DMO said it would use up the 742 million pound ($905 million) unallocated pot by increasing sales of short-dated gilts by 242 million pounds and by 500 million pounds for medium-dated gilts, it said in a statement.
To end its 2016/17 auction programme of medium-dated gilts, the DMO said it would launch a new 10-year bond maturing in July 2027 on March 14, which will carry a 1.25 percent coupon and have a launch volume of 2.25 billion pounds.
The volume of the final short-dated gilt to be sold via auction this financial year, the 0.5 percent 2022 gilt, will be set on March 21.
Chancellor Philip Hammond delivers Britain's annual budget statement on Wednesday, after which the DMO will announce its gilt issuance remit for the 2017/18 financial year starting in April.
A Reuters poll of market makers on Tuesday showed the DMO will issue around 110 billion pounds of gilts for the coming year.
($1 = 0.8201 pounds)
Reporting by Andy Bruce, editing by David Milliken