LONDON (Reuters) - Britain will issue 115.1 billion pounds of government bonds in the upcoming 2017/18 financial year, more than forecast in a Reuters poll of primary dealers who had expected sales of 110 billion pounds.
The DMO said it intended 87.5 billion pounds of gilts to be sold via 40 auctions, and at least 21 billion pounds to be sold via syndication.
The DMO’s split of short-, medium-, long- and index-linked bonds to be sold was largely as expected by primary dealers, being slightly slanted towards long-dated bonds but otherwise evenly split.
Gilt futures FLGcv1 extended losses after the news of higher-than-expected issuance, which appeared to partly reflect a decision by the DMO to lower the amount of outstanding Treasury bills by 9.5 billion pounds, funded by increased gilt issuance.
The net financing requirement for the 2017/18 financial year was 105.6 billion.
($1 = 0.8219 pounds)
Reporting by Andy Bruce, editing by David Milliken