British Treasury plans to reduce the size of government bond issuance by 20%, bringing benefits to bond investors.

The UK is expected to reduce the size of its debt issuance in the coming year, which is good news for bond investors concerned about the country's fiscal strain. According to a survey by Bloomberg of 12 primary dealers, the UK Debt Management Office is expected to announce a total issuance of 245 billion for the 2026/2027 fiscal year. This would be the lowest in three years, a decrease of 590 billion from the current fiscal year, and is expected to ease the short-term funding cost pressure for the UK government - which currently has the highest financing costs among the G7 countries. Economist Dani Stoilova from BNP Paribas in Paris said, "I believe this will help to keep the market stable in the coming months. After experiencing shocks from the pandemic and energy crisis, this seems more like a return to normalcy."