Global Rates Viewpoint: Global DMOs: primer + WAM drop theme

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Global Rates Viewpoint: Global DMOs: primer + WAM drop theme

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Global Rates Viewpoint

Global DMOs: primer + WAM drop theme

Primer

Global DMO comparison: similar aims & fights 14 July 2026

In this note we compare global debt management office (DMO) practices across regions. Rates Research

We analyze activity across 6 regions: US, Canada, EU, UK, Japan, Australia. Global

Our key findings: (1) all regions have similar, though slightly different aims (2) most are Table of Contents

shortening debt WAM (3) auction mechanics vary across regions (4) demand drives

issuance (5) DMOs are somewhat flexible to best meet demand. Global DMO comparison 2

Stage setting: DMO basics 2

Stage setting: DMO basics + demand driven issuance Debt composition: demand drives supply 3

Goal of all DMOs = lowest interest expense. Most DMOs also want to (1) minimize DMO methods: auctions, buybacks, & repo 6

rollover risk & interest expense variability (2) maintain a well-functioning market. To Acronym list 11

achieve these goals DMOs aim for transparency, predictability, & liquidity.

DMOs have a range of WAMs that are heavily influenced by domestic demand. UK WAM Global Rates Research

is nearly 2x the DM average (with nearly 4x the average DM inflation-linked debt share) MLI (UK)

due to heavy pension & insurance LDI demand in the past; AU has the shortest WAM Mark Cabana, CFA

Rates Strategist

partially due to RBA’s 3Y yield curve control & bond purchase programs. Beyond demand, BofAS

there is a loose positive relationship between issuer WAM & debt / GDP. mark.cabana@bofa.com

Eleanor Xiao

WAM shortening: DMOs to test the boundaries RatesBofASStrategist

Most DMOs are shortening WAM. WAM lower b/c (1) funding costs are higher at the eleanor.xiao@bofa.com