Live Updates > Live Update Details
2026-02-26 17:36:33
[RBC predicts a sharp drop in issuance, suggesting a potential "new normal" bull market for UK bonds] ⑴ A report released by RBC Capital Markets strategists indicates that UK government bonds may see a rise as public sector debt issuance is expected to decline significantly in the next fiscal year. ⑵ The key date is March 3rd, when Chancellor of the Exchequer Rachel Reeves will release the Spring Budget. Following this, the UK Debt Management Authority will formally announce the authorization statement for government bond issuance in the next fiscal year. ⑶ According to RBC's forecast, in the 2026/2027 fiscal year ending April 2027, the total supply of UK government bonds will shrink significantly from £304 billion in the 2025/2026 fiscal year to approximately £236 billion. Strategists believe that the slowdown in government bond supply this quarter will become the "new normal" in the coming year. ⑷ Based on this positive change in supply, the institution has strengthened its bullish stance on UK government bonds and maintains its expectation that they will outperform similar bonds in other developed markets. Easing supply pressures are expected to provide medium-term support for UK bond prices.
