LONDON (Reuters). – The UK’s economy is recovering faster than expected and the underperformance of borrowing forecasts have led to a reduction in bond sales by the government.

According to 12 primary dealers, the Debt Management Office’s median forecast showed that it will sell 218.8 Billion Pounds ($300.89 Billiard) of gilts by 2021/22. This is a reduction of 33.8 billion pounds from its current remit.

The government hires primary dealers (also known as “gilt-edged marketmakers”) to create liquidity for the debt.

In the current fiscal year which started in April, 153.1 billion pounds worth of bonds have been sold by government agencies.

To fund its economic response to the COVID-19 pandemic, it sold 485.8 Billion Pounds of Glizes during the 2020/21 fiscal year.

Due to the recovery in world’s fifth largest economy, borrowing for this year will likely be about 40 billion pounds (or $55 billion), below official projections.

After reaching 15% of the gross domestic product in the March year, which was the highest point since World War Two II, the budget deficit is projected to fall to a much lower level than previously forecast.

Survey results showed that government borrowing for 2012/22 is likely to reach around 190billion pounds. That’s far lower than the forecasted 233.9 billions pounds for March from the Office for Budget Responsibility. And it compares well with the 247billion in 2020/21.

MEDIAN 190.0 228.1

MEAN: 189.9 218.5

MAX 211.7 232.6

MIN 160.0 200.0

COUNT 13 12

PSNB-ex Gilt

(bln issue

stg) (bln stg)

Barclays (182.0-212.6)

BNP Paribas (OTC:) 211.7 230.8

Citi 173.0, 207.6

Deutsche Bank (DE) 188.9 212.5

HSBC 194.8 20.6

JPMorgan (NYSE:) 160.0

Lloyds (LON 🙂 185.9 219.6

Merrill Lynch 190.0 227.6

Morgan Stanley (NYSE) 194.0 20.0

NatWest 190.0 20.0

Nomura 185.0 20.0

RBC 209,0 2232.6

Santander (MC:) 199.0 218.0

($1 = 0.7272 pounds)