OIL: The discount to Brent for Russia's flagship 

The DMO has published the minutes of its annual consultation with GEMMs and Gilt Investors. Link here

Planned Split Of Convention Issuance:

• GEMMs: “The planned split of conventional gilt issuance by maturity in the current financial year should broadly continue into 2026-27, although some who commented suggested that continued caution around the proportion of long conventional issuance may be appropriate”
  • “There was also some support expressed for using switch auctions to supply benchmark long-dated gilts in order to encourage liquidity without increasing absolute supply in the sector”
• Gilt Investors: “Supportive of maintaining broadly the same split of conventional gilt issuance in 2026-27 as in the current financial year, although there were isolated calls for marginal changes to the issuance split and for issuance of shorter maturity conventional gilts”
  • “Some investors also suggested that switch auctions could represent a useful addition to the range of issuance methods available to the DMO, particularly to support liquidity in benchmark long conventional gilts”

Linkers and Green gilts:

• GEMMs: “The proportion of index-linked gilt issuance in 2026-27 should be maintained at a similar percentage to the current financial year”.
  • “Support was expressed for continued green gilt issuance in 2026-27 with some participants suggesting that there would be demand for a larger green gilt issuance programme than planned in the current financial year.”
• Gilt Investors: “Investors who provided an opinion welcomed further green gilt supply in 2026-27. Investors who provided comments recommended that a similar proportion of the gilt financing programme in 2026-27 should comprise index-linked gilts as planned in the current financial year”

PGTs:

• GEMMs: “The continued use of programmatic gilt tenders in 2026-27 was strongly supported by GEMMs who valued the flexibility that this issuance method provided at the margins of the programme.”
• Gilt Investors: “Those investors who commented were in favour of retaining flexibility in the delivery of the financing programme in 2026-27, including via an unallocated portion of issuance and an ongoing role for programmatic gilt tenders.”

Bills:

• GEMMs: “Caution was expressed about making any significant change to net supply of Treasury bills for debt management purposes pending any wider changes that may be communicated in the 2026-27 financial year”
• Gilt Investors: “Caution was warranted about the size of any increase in net Treasury bill issuance for debt management purposes in the absence of liquid secondary and repo markets for these instruments”.

Some Vol Option Trade have been going through on Blocks in early trade following the big price action in Yields that started Yesterday via Futures on NATO risks.

• USH6 114.00^, was bought for 225 in 5k and then for 232 in 5k.

• Size: EUR benchmark (MNI expects E13-15bln)
• Books: Above EU120bln (including JLM interest)
• Guidance: SPGB+8 Area
• Coupon: Short First
• Maturity: 30 April 2036
• Bookrunners: Barclays, BBVA, HSBC, J.P. Morgan, Morgan Stanley and Santander
• Settlement: 27 Jan 2026 (T+5)
• Timing: May price today

From Bloomberg / MNI colour