UK sells £800 million of index-linked treasury gilt at auction

Published 04/09/2025, 11:04
UK sells £800 million of index-linked treasury gilt at auction

LONDON - The United Kingdom Debt Management Office (DMO) announced on Thursday that it has successfully auctioned £800 million of 0 5/8% Index-linked Treasury Gilt 2045.

The auction saw strong demand with total bids reaching £3,131 million, making the offering 3.91 times oversubscribed. The striking price was set at £72.277 (real clean price), with an inflation-adjusted clean price of £80.377083, yielding a real yield of 2.412%.

Bids accepted at the striking price were allotted 76.6666% of the amount bid for, while competitive bids made at prices above the striking price were allotted in full. Bids below the striking price were rejected.

Of the total amount, £679.999 million was allotted to competitive bids, while £120.000 million went to Gilt-edged Market Makers through non-competitive bids. A nominal £0.001 million was allotted to other non-competitive bidders.

The DMO also stated that an additional amount of the stock totaling up to £200.000 million will be made available to successful bidders for purchase at the non-competitive allotment price, according to the terms outlined in the Information Memorandum.

Stock allotted to members of CREST will be credited to their accounts by member-to-member deliveries on the relevant settlement date.

The inflation-adjusted clean price was calculated using an index ratio of 1.11207, according to the press release statement.

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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