English Español Crypto Markets Prediction Markets Macro AI Tech Research Sports Newsletter Advertising Try Vera Sections Bitcoin DeFi Ethereum NFTs AI Agents Regulation Web3 Business Ecosystem Sections Soccer Esports Crypto Bitcoin DeFi Ethereum NFTs AI Agents Regulation Web3 Business Ecosystem Markets Prediction Markets Macro AI Tech Research Sports Soccer Esports Newsletter Advertising Try Vera SEARCH Searching... Photo: Ruben Reyes / Pexels DMO cuts long gilt sales to 9% of issuance as UK debt strategy shifts Britain's debt manager is rethinking its approach to long-dated bonds as pension funds lose their appetite for duration Share Add us on Google by Editorial Team Sep. 7, 2026 The UK Debt Management Office is exploring whether to absorb long-dated gilts from the Bank of England’s balance sheet, a move that would mark a significant coordination shift between Britain’s two most important players in the government bond market. For the 2026-27 fiscal year, the DMO has slashed its planned long conventional gilt sales to £23 billion, roughly 9% of total issuance. Jessica Pulay, DMO CEO, indicated in March that issuance plans reflect declining structural demand for long-dated gilts from domestic pension funds. Advertisement The pension fund problem The liability-driven investment sector has been recalibrating since the 2022 mini-budget crisis exposed how leveraged these strategies had become. Pension funds are now de-risking, shifting toward shorter maturities, and in many cases moving to buyout with insurers. What the Bank of England is doing For Q3 2026, the central bank’s APF schedule includes three short-maturity gilt auctions at £725 million each and two medium-maturity auctions at £600 million each, with zero long-dated sales planned for the quarter. The DMO plans to run a pilot switch auction on September 24, 2026, following consultations with gilt market participants. Switch auctions allow the government to retire long-dated bonds and replace them with shorter maturities, effectively reshaping the duration profile of outstanding UK debt without increasing the total stock. Britain’s duration dilemma The UK’s average gilt maturity stands at approximately 14.4 years, one of the longest in the G7. The DMO’s pivot toward shorter maturities in new issuance is already pulling that average down, but the existing stock of long gilts remains substantial. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy. POLITICS DMO cuts long gilt sales to 9% of issuance as UK debt strategy shifts Britain's debt manager is rethinking its approach to long-dated bonds as pension funds lose their appetite for duration by Editorial Team Sep. 7, 2026 Share Add us on Google Photo: Ruben Reyes / Pexels The UK Debt Management Office is exploring whether to absorb long-dated gilts from the Bank of England’s balance sheet, a move that would mark a significant coordination shift between Britain’s two most important players in the government bond market. For the 2026-27 fiscal year, the DMO has slashed its planned long conventional gilt sales to £23 billion, roughly 9% of total issuance. Jessica Pulay, DMO CEO, indicated in March that issuance plans reflect declining structural demand for long-dated gilts from domestic pension funds. Advertisement The pension fund problem The liability-driven investment sector has been recalibrating since the 2022 mini-budget crisis exposed how leveraged these strategies had become. Pension funds are now de-risking, shifting toward shorter maturities, and in many cases moving to buyout with insurers. What the Bank of England is doing For Q3 2026, the central bank’s APF schedule includes three short-maturity gilt auctions at £725 million each and two medium-maturity auctions at £600 million each, with zero long-dated sales planned for the quarter. The DMO plans to run a pilot switch auction on September 24, 2026, following consultations with gilt market participants. Switch auctions allow the government to retire long-dated bonds and replace them with shorter maturities, effectively reshaping the duration profile of outstanding UK debt without increasing the total stock. Britain’s duration dilemma The UK’s average gilt maturity stands at approximately 14.4 years, one of the longest in the G7. The DMO’s pivot toward shorter maturities in new issuance is already pulling that average down, but the existing stock of long gilts remains substantial. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy. Loading more articles... You've reached the end Follow Us Quick Links Bitcoin Ethereum DeFi Markets NFTs AI Tech AI Agents Newsletter Regulation Macro Advertising CB Select Company Team Contact Advertising Account Log In Quick Links Bitcoin Ethereum DeFi Markets NFTs AI Tech AI Agents Newsletter Regulation Macro Advertising CB Select Follow Us Account Log In All content is for informational purposes only and does not constitute investment advice. CryptoBriefing does not provide recommendations to buy, sell, or hold any asset or contract. 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