OpenConsultation consultationoutcome

Consultation on the UK Treasury bill market

From:
HM Treasury and UK Debt Management Office
Published
5 January 2026
Last updated
5 May 2026 — See all updates
This consultation has concluded

Read the full outcome

The UK Treasury bill market: Consultation response

PDF, 339 KB, 38 pages

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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‑bill) 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’s debt and cash management objectives, HMT and the DMO will take the following steps to support market development:

  • Introduce T‑bills around the 12‑month 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‑bills 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‑bill 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

Summary

HM Treasury and the UK Debt Management Office are consulting on expanding and deepening the UK Treasury bill (T-bill) market, as announced at Autumn Budget 2025. This supports our commitment to maintaining a well-diversified investor base, to enhance the resilience of the government’s financing programme.

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Consultation description

In recent years, the government’s 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 – 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’s 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’s 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’s 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

The UK Treasury bill market – a consultation document

PDF, 424 KB, 27 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Ways to respond

Email to:

policy@dmo.gov.uk

Updates to this page

Published 5 January 2026
Last updated 5 May 2026 href="#full-history">+ show all updates

  1. Outcome of response added.

  2. First published.

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