Speakers' Corner: Leverage ratios, gilt demand and the future of UK funding

In the first episode of Bondcast Speakers’ Corner, host Imogen Bachra is joined by James Bucknall and Iain Budge to discuss one of the most closely watched regulatory topics in UK rates markets: the leverage ratio framework.

With the UK facing sizeable financing needs, ongoing quantitative tightening (QT), and growing debate around who will absorb future gilt supply, the conversation explores whether changes to leverage rules could unlock additional demand from bank treasuries and support government funding markets.

Topics raised:

* The Financial Policy Committee's (FPC) July review of the leverage ratio framework is an important event for UK rates markets.
* Changes to leverage rules could support Treasury Bill market liquidity and increase bank demand for gilts.
* The gilt market itself remains resilient, with funding conditions holding up well despite episodes of heightened volatility.
* Any easing of leverage constraints would likely benefit a broader range of assets, not just gilts.
* Regulatory reform may become increasingly relevant as QT progresses and more duration moves onto private sector balance sheets.

Host: Imogen Bachra (Head of Economics and Markets Strategy)
Guests: Iain Budge (Head of Banks and Building Societies Solutions)
James Bucknall (Head of Sterling Interest Rate Trading)

The views expressed in this episode are not necessarily those of NatWest Group.

Recorded on 18 June 2026

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