Consultation on the UK Treasury bill market
Read the full outcome
Detail of outcome
On 5 January 2026, HM Treasury (HMT) and the UK Debt Management Office (DMO) launched a consultation on expanding and deepening the UK Treasury-bill (T鈥慴ill) market, which closed on 27 February 2026.
Having considered responses to the consultation, and following an analysis of cost and risk in line with the government鈥檚 debt and cash management objectives, HMT and the DMO will take the following steps to support market development:
- Introduce T鈥慴ills around the 12鈥憁onth maturity point at weekly tenders by the end of the 2026-27 financial year, to capture incremental sources of structural demand for maturities beyond six months.
- Establish a Standing Repo Facility for T鈥慴ills in the 2026-27 financial year, which will allow dealers to borrow T-bills on demand on a temporary basis, strengthening their ability to make two-way prices and support secondary market liquidity.
- Create and maintain a T鈥慴ill collateral pool (not for outright sale) that can be deployed in the secondary market, with collateral creation expected to begin shortly after Autumn Budget 2026.
The government will provide further updates around the implementation of these measures at Autumn Budget 2026.
Going forward, the government will keep the case for further reforms (including those in this consultation) under review, in a manner that continues to be responsive to evolving market demand, whilst ensuring consistency with its debt and cash management objectives.
Original consultation
Consultation description
In recent years, the government鈥檚 net financing requirements have been met primarily via gilt sales.
Through this consultation, the government is seeking to better inform the structure of its T-bill issuance programme, as well as exploring options to promote participation in the T-bill market 鈥� both via its primary market operations and through the development of a more active and liquid secondary market in the UK.
Together, these could potentially support a higher level of T-bill stock over time, which may in turn support a larger role for T-bills in the government鈥檚 debt financing programme.
The government welcomes views from all interested parties, and in particular from current and potential participants in the T-bill market.
Any decisions about the government鈥檚 approach to T-bill issuance and the T-bill market will consider stakeholder feedback, in addition to cost and risk considerations (in line with the government鈥檚 debt and cash management objectives). Said decisions will be communicated in the 2026-27 financial year, with sufficient notice to give the market time to prepare.
How to respond
We strongly encourage responses via email to tbillconsultation@dmo.gov.uk. If you cannot respond via email, you may send a written response to the UK Debt Management Office at the address provided in the consultation document.
When responding, please clearly indicate which consultation question each comment relates to, and state whether you are responding as an individual or representing the views of an organisation, business, or representative body.
Documents
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