UK to auction £1.6 billion index-linked gilt on February 25

Published 18/02/2025, 17:16
UK to auction £1.6 billion index-linked gilt on February 25

LONDON - The UK Debt Management Office (DMO) announced it will auction £1.6 billion of the 1⅛% Index-linked Treasury Gilt 2035 on Tuesday, February 25, 2025. This issuance is part of the government’s ongoing debt management strategy and is fungible with a previous issue, bringing the nominal outstanding amount to £3.1 billion after the auction.

The auction is set to open at 9:00 am and close at 10:00 am London time, with a post-auction option facility available between 12:30 pm and 1:00 pm on the same day. The settlement date for the gilt is the following day, Wednesday, February 26, 2025.

Index-linked gilts are government bonds whose principal is adjusted according to the Retail Prices Index (RPI), a measure of inflation. The interest payment for the gilt, due on September 22, 2025, will be calculated using the index ratio at the time of the next interest payment date.

Investors have the option to bid competitively or non-competitively, with specific bidding procedures outlined in the prospectus and the Information Memorandum. The auction will be conducted through the Bloomberg Bond Auction System, and only bids submitted within the specified times will be considered.

The DMO has provided documentation, including the prospectus for the auction and the Information Memorandum for British Government Stock, on its website. Additionally, the DMO has published a table showing the progress of gilt sales in the current financial year, which is updated following each sales operation.

This announcement is based on a press release statement from the UK Debt Management Office. The auction is part of the government’s routine financing activities and does not permit applications from members of the Approved Group of Investors for this particular auction.

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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