Bullish indicating open at $55-$60, IPO prices at $37
LONDON - The UK Debt Management Office (DMO) announced it will auction £1.6 billion of 1⅛% Index-linked Treasury Gilt 2035 on Wednesday, April 2, 2025. This issuance is part of the government’s financing strategy and is fungible with previous issues, bringing the total nominal outstanding for this gilt to £5,007.7 million after the auction.
The auction is slated to open at 9:00 am and close at 10:00 am London time on the auction date. A post-auction option facility, which allows for the purchase of an additional 25% of the nominal amount allocated at the auction, will be open from 12:30 pm to 1:00 pm on the same day.
The index-linked gilt, with a maturity date of September 22, 2035, will have its next interest payment on September 22, 2025. The interest is paid gross, with holders having the option to elect UK income tax deduction from the payments. The Reference Index for the gilt, used for inflation adjustments, stood at 390.88065 as of January 29, 2025.
Bids for the auction can be made on a competitive or non-competitive basis, with detailed procedures outlined in the prospectus and Information Memorandum. Index-linked Gilt-edged Market Makers may place bids through the Bloomberg Bond Auction System.
The DMO has made the auction’s prospectus available on its website, along with the Information Memorandum related to the issue, stripping, and reconstitution of British Government Stock, and the formulae for calculating gilt prices from yields.
This auction comes as part of the government’s ongoing efforts to manage the national debt and finance public spending. Applications for this auction cannot be made by members of the Approved Group of Investors. The DMO also provides a table showing the progress of gilt sales for the current financial year, which is updated after each sales operation.
The information for this report is based on a press release statement from the UK Debt Management Office.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.