UK sells £3 billion of Treasury Gilt 2040 at auction with 2.95x coverage

Published 16/09/2025, 10:44
UK sells £3 billion of Treasury Gilt 2040 at auction with 2.95x coverage

LONDON - The United Kingdom Debt Management Office (DMO) completed an auction of £3 billion of 4⅜% Treasury Gilt 2040 on Tuesday, with demand outstripping supply by nearly three times.

The auction attracted £8.843 billion in bids, resulting in a coverage ratio of 2.95 times the amount offered, according to a press release statement from the DMO.

Competitive bids were accepted at prices ranging from £93.090 to £93.225, corresponding to yields between 5.057% and 5.043%. Bids at the lowest accepted price received a partial allocation of 80% of the amount requested, while higher-priced bids were allotted in full.

The non-competitive allotment price was set at £93.176, representing a yield of 5.048%. Of the total amount, £2.55 billion was allocated to competitive bids, while £450 million went to gilt-edged market makers through non-competitive bids.

The auction had a tail of 0.9 basis points, calculated as the difference between the yield at the lowest accepted price and the yield at the average accepted price.

The DMO also announced that an additional amount of up to £750 million of the same gilt will be made available to successful bidders for purchase at the non-competitive allotment price.

The Treasury Gilt 2040 (ISIN Code:GB00BQC82D08) will be credited to the accounts of successful bidders who are members of CREST through member-to-member deliveries on the relevant settlement date.

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