UK auctions £4.25 billion in Treasury Gilt at 4.375%

Published 04/02/2025, 11:24
UK auctions £4.25 billion in Treasury Gilt at 4.375%

LONDON - The UK Debt Management Office (DMO) has successfully completed the auction of £4,250 million of 4⅜% Treasury Gilt due in 2030. The auction, which took place today, saw competitive bids that exceeded the amount on offer by more than three times, indicating strong investor demand for UK government securities.

The gilts were sold at prices ranging from £100.413 to £100.472, corresponding to yields from 4.281% to 4.268%. Bids at the lowest accepted price were allocated 76.4900% of the amount bid for, while those above this threshold were allotted in full. Bids below the lowest accepted price were rejected.

In addition to the competitive bids, gilt-edged market makers were allocated £637.5 million on a non-competitive basis, with an additional £0.001 million allocated to other bidders. The DMO also announced that up to £1,062.5 million of the stock would be available for purchase at the non-competitive allotment price, following the terms set out in the Information Memorandum.

The high demand for the gilt, with total bids received amounting to £12,949.5 million, resulted in a coverage ratio of 3.05 times. This reflects the market’s confidence in the UK’s fiscal stability and the attractiveness of its government bonds as an investment vehicle.

The DMO stated that the stock allotted to members of CREST, the UK’s securities settlement system, will be credited to their accounts promptly on the settlement date.

This news is based on a press release statement from the UK Debt Management Office.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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