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LONDON - The UK Debt Management Office (DMO) has priced a new syndicated launch of a £13.0 billion Treasury Gilt at £99.706 per £100 nominal, achieving a redemption yield of 4.5363%. The gilt, with a 4½% interest rate and maturing in 2035, is set to be issued on Wednesday.
This issuance marks the seventh out of eight planned syndications for the fiscal year 2024-25, with proceeds expected to reach approximately £12.9 billion. The sale contributes to the financial year’s syndication proceeds, which now total £54.5 billion, closely approaching the revised target of £55.0 billion.
The domestic market in the UK was the primary supporter of the issue, securing about 60% of the allocation. Jessica Pulay, the CEO of the DMO, expressed satisfaction with the market’s reception of the new gilt and the flexibility that allowed the transaction to exceed initial expectations. Pulay also commended the joint lead managers and co-lead managers for their efficient handling of the launch.
The successful offering is anticipated to establish the bond as the 10-year gilt benchmark over time. The DMO’s statement, based on a press release, indicates a strong market commitment to the UK’s debt instruments as the financial year nears its end.
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