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UK Shifts Debt Strategy with £11 Billion Treasury Bill Increase
UK Shifts Debt Strategy with £11 Billion Treasury Bill Increase
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BTCCSquare news:
The UK Debt Management Office has recalibrated its borrowing approach, raising net Treasury bill issuance to £11 billion for the current fiscal year. These short-term instruments—maturing in under twelve months—now represent a strategic pivot in Britain's £2.9 trillion debt portfolio, where they currently constitute just £78 billion of outstanding supply.
Whitehall's push toward shorter-duration debt comes as pension funds retreat from long-dated gilts. The average 14-year maturity of UK sovereign debt significantly exceeds peer nations, prompting Treasury officials to explore duration compression. "This signals materially lower average gilt maturities ahead," observes Barclays rates strategist Moyeen Islam.
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