HM Government Borrowings: October 2020

Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties.
Now we are in a Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]

https://www.dmo.gov.uk/dmo_static_reports/Gilt%20Operations.pdf

Another deficit month, thus to bridge the gap, needs to borrow on the bond market In October 2020 , the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement. There were “only” 15 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-

28-Oct-2020 0 3/8% Treasury Gilt £3,084.9990 Million
27-Oct-2020 0 1/8% Treasury Gilt 2024 £3,510.7420 Million
27-Oct-2020 1 5/8% Treasury Gilt 2071 £1,249.9990 Million
22-Oct-2020 0 5/8% Treasury Gilt 2035 £2,632.0000 Million
22-Oct-2020 0 5/8% Treasury Gilt 2050 £1,986.8750 Million
20-Oct-2020 1¼% Index-linked Treasury Gilt 2032 3 months £697.0490 Million
14-Oct-2020 0 7/8% Treasury Gilt 2029 £3,125.0000 Million
13-Oct-2020 0 1/8% Treasury Gilt 2026 £3,000.0000 Million
13-Oct-2020 1¾% Treasury Gilt 2057 £1,562.4990 Million
07-Oct-2020 0 3/8% Treasury Gilt 2030 £2,500.0000 Million
07-Oct-2020 0 1/8% Index-linked Treasury Gilt 2041 3 months £884.1490 Million
06-Oct-2020 0 1/8% Treasury Gilt 2024 £3,518.4520 Million
06-Oct-2020 1¾% Treasury Gilt 2049 £2,000.0000 Million
01-Oct-2020 0 1/8% Treasury Gilt 2023 £3,250.0000 Million
01-Oct-2020 1¼ % Treasury Gilt 2041 £2,000.0000 Million

(£3,084.9990 Million + £3,510.7420 Million + £1,249.9990 Million + £2,632.0000 Million + £1,986.8750 Million + £697.0490 Million + £3,125.0000 Million + £3,000.0000 Million + £1,562.4990 Million + £2,500.0000 Million + £884.1490 Million + £3,518.4520 Million + £2,000.0000 Million + £3,250.0000 Million + £2,000.0000 Million) = £35,001.764 Million

£35,001.764 Million = £35 Billion

On another way of looking at it, is in the 31 days in October 2020, HM Government borrowed:- £1129.089161 Million each day for the 31 days.

We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature from 2023 through to 2071. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together….

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