The UK is shifting government borrowing towards shorter maturities as elevated long-term yields and changing investor demand reshape its debt issuance strategy.
Highlights
• Following the October 28 Budget, the UK Debt Management Office raised planned gilt issuance for 2026/27 by £4.4bn to £250.6bn.
• Long-dated conventional gilt sales were cut by £6.9bn to £15.5bn, just 6.2% of total issuance — the lowest share since 1990/91.
• Short- and medium-dated conventional gilts will account for 78.6% of planned issuance, while the net contribution from Treasury bills rises by £3bn to £8bn.
The shift reflects the high cost of long-term borrowing, alongside declining demand from traditional pension fund investors. As many defined benefit pension schemes have closed to new members and become better funded, their need to hedge long-term liabilities through long-dated gilts has diminished.
Sources: HM Treasury, UK DMO, Bank of England, Reuters, Econoday Sovereign Debt Calendar
