U.K. Bonds Brace for Virus Debt Deluge Topping Crisis Highs
- Gilt issuance will surge to 270 billion pounds, survey shows
- BOE debt buying may help check any increase in borrowing costs
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The U.K. bond market looks set to face a flood of bond sales that dwarfs the current record for government borrowing set during the global financial crisis.
Britain will likely sell 270 billion pounds ($333 billion) of gilts in the fiscal year that started this month, to fund spending plans needed to combat the economic damage from the coronavirus, according to a Bloomberg survey of nine primary dealers. That would top the 2009-2010 high of 228 billion pounds, and mark an overrun of more than 100 billion pounds from last month’s initial estimate.