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UK debt agency boss sees possible 'bumps in road' for financing

UK debt agency boss sees possible 'bumps in road' for financing
UK debt agency boss sees possible 'bumps in road' for financing Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
Published on Updated
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LONDON - The head of Britain's Debt Management Office (DMO) said on Wednesday he could not exclude the possibility that there will be "the odd bump along the road" in meeting the government's financing target for the current financial year.

Robert Stheeman, however, told the Treasury Committee of lawmakers in parliament that he was "very confident" of meeting the target.

The DMO aims to sell 193.9 billion pounds ($224.19 billion)of gilts in the 2022/23 financial year ending in March and is 58% of the way through its target.

Gilts were the subject of an unprecedented sell-off following the announcement of then prime minister Liz Truss's economic agenda on Sept. 23.

Stheeman said investors had called into question Britain's institutional credibility, although the recent recovery in gilt prices suggested their concerns had "to a significant extent" receded.

While there was always the possibility that a gilt auction would attract insufficient demand to sell the planned amount, Stheeman said that the DMO had procedures in place to manage this.

($1 = 0.8649 pounds)

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