UK index-linked gilt auction covers 3.52 times the offer

Published 25/02/2025, 12:12
UK index-linked gilt auction covers 3.52 times the offer

LONDON - The UK Debt Management Office (DMO) has successfully completed an auction of £1,600 million in 1⅛% Index-linked Treasury Gilt 2035. The auction, which took place on Monday, witnessed competitive bids that exceeded the amount on offer by 3.52 times, indicating robust demand for the inflation-protected securities.

The striking price for the auction was set at £100.100, with all competitive bids at this price receiving an allocation of 36.5625% of the amount bid. Bids above the striking price were fully allotted, while those below were rejected. The real yield was reported at 1.115%.

In total, £1,360 million was allotted to competitive bids, with gilt-edged market makers receiving £240 million. No allotment was made to other non-competitive bids. Additionally, the DMO has made available an extra amount of the gilt totaling up to £400 million for purchase at the non-competitive allotment price by successful bidders, as stipulated in the Information Memorandum.

The DMO also stated that stock allotted to members of CREST, the securities settlement system, will be credited to their accounts on the relevant settlement date.

The inflation-adjusted clean price, calculated with an index ratio of 1.00279, was quoted at £100.379279. This figure is presented for illustrative purposes and has been calculated to six decimal places.

This press release statement from the UK Debt Management Office provides the latest figures on the government’s debt management efforts and the market’s appetite for UK debt securities.

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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