UK DMO Head: Wants To Keep Auction Process, Regular Supply

LONDON – The UK Debt Management Office (DMO) wants to
maintain its auction process as it thinks the market finds it easier to
digest regular supply, UK debt chief Robert Stheeman said.

In comments at a Euromoney conference here, Stheeman added that the
auction program is more predicatable than the syndication method of
issuance.

The DMO chief added that the agency stands ready to listen to
feedback from the market and will consult fully before it issues new
types of bonds.

When asked about any possible issuance of new CPI-linked bonds,
Stheeman said “We need to see what form CPI-indexation legislation
takes,” adding that it seems “sensible” to defer any decision on
CPI-linked bonds at this stage.

Stheeman added that it was noteworthy that the linker market has
held up very well despite talk of a potential new CPI-linked bond and he
is not keen to see a fragmentation of the market.

–London newsroom: 4420 7862 7492; email: wwilkes@marketnews.com,
nshamim@marketnews.com

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