UK bond-market participants want the government to sell fewer long-dated gilts next year due to waning demand from pension funds, as officials grapple with a surge in borrowing costs that took yields to the highest since 1998.
Dealers expressed “strong support” for a reduction in the duration of gilt issuance in the 2025-26 fiscal year relative to current levels, according to the minutes from annual consultation meetings held on Monday. Most investors pushed for more short-dated issuance, citing waning demand for long bonds from pension funds, the minutes said.
