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The Treasury’s Debt Management Office will reduce its gilt sales in the next financial year by more than a fifth, as better than expected growth reduces the government’s borrowing requirements.

In its annual financing remit released alongside the chancellor’s spring budget, the DMO said it is planning £115.1bn worth of gilt sales in 2017-18, down from £146.5bn this year but higher than the £109.7bn consensus estimate compiled by Reuters.

That will be the lowest level of bond issuance in ten years, but analysts at Citi warned that “this is not the beginnings of a sustained decline”.

The independent Office for Budget Responsibility today predicted that higher than expected growth will reduce the government’s borrowing bill this year, though it is expected to progress at the same rate as previously predicted over the next five years.

Citi predicted that “gross issuance will remain around current levels, or perhaps a little higher, for the next few years”.

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