UK sells £900 million of index-linked treasury gilt at auction

Published 08/07/2025, 11:28
UK sells £900 million of index-linked treasury gilt at auction

LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) conducted an auction of £900 million of 1⅞% Index-linked Treasury Gilt 2049 on Tuesday, with the sale attracting bids totaling £3.05 billion.

The auction was 3.39 times oversubscribed, according to a press release statement from the DMO. The striking price was set at £91.090 in real terms, equivalent to an inflation-adjusted clean price of £93.512083, yielding 2.360% in real terms.

Competitive bids made above the striking price were allotted in full, while those at the striking price received 30% of the amount bid for. Bids below the striking price were rejected.

Of the total amount, £765 million was allotted to competitive bids, while £135 million was allocated to Gilt-edged Market Makers through non-competitive bids. No allocations were made to other non-competitive bidders.

The DMO also announced that an additional amount of up to £225 million of the stock will be made available to successful bidders for purchase at the non-competitive allotment price, as outlined in the Information Memorandum.

The index-linked gilt, which matures in 2049, carries a coupon rate of 1⅞% and has the ISIN code GB00BT7J0134. The inflation-adjusted clean price was calculated using an index ratio of 1.02659.

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

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