Morgan Stanley writes that the UK should target a doubling of gov't bill issuance over a five year horizon, to increase flexibility, meet demand, reduce funding costs and reduce the weighted-average maturity of debt stock

• i.e. additional issuance of as much as GBP 20bln/yr and a roughly similar reduction in Gilt sales.

Morgan Stanley's recommendation for the UK to double government bill issuance over the next five years suggests a strategic shift aimed at enhancing flexibility and reducing funding costs. This move could influence the overall debt maturity profile and impact the yield curve as additional issuance may put downward pressure on longer-term rates while providing a liquidity boost in the short term.