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<p>The Debt Management Office (DMO) continues to issue long-dated conventional gilts
and index-linked gilts (linked to the Retail Prices Index), which are instruments
often used by pension funds to match longer term liabilities. Decisions on the exact
composition of debt issuance are informed by an assessment of investor demand for
debt instruments by maturity and type as reported by stakeholders, and as manifested
in the shape of the nominal and real yield curves; and by the government’s appetite
for risk. The former is noted at quarterly consultation meetings with market participants,
held by the DMO.</p><p> </p><p>At present, the UK Government does not have any plans
to introduce any new debt financing instruments in response to Covid-19. The government
remains open to the introduction of new debt instruments, but would need to be satisfied
that any new instrument would meet value-for-money criteria, enjoy strong and sustained
demand in the long-term and be consistent with wider fiscal objectives.</p>
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