UK Shifts Debt Strategy Amid Rising Interest Rates, Market Conditions
The UK Debt Management Office is pivoting from long-term gilts to short-term Treasury bills as global interest rate surges reshape borrowing costs. This tactical adjustment aims to balance fiscal constraints with investor appetite shifts.
Pension funds’ dwindling demand for long-dated bonds reflects a broader market recalibration. "We’re optimizing debt structure for taxpayer value while responding to real-time market dynamics," said DMO lead Jessica Pulay, underscoring the operational flexibility required in volatile conditions.