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LONDON - The UK Debt Management Office (DMO) announced it will auction £3.25 billion of the 4⅜% Treasury Gilt 2040 on Thursday, April 3, 2025, with settlement due the following day. This issuance is part of the government’s financing strategy outlined in the Spring Statement 2025, which includes gilt sales totaling £299.2 billion for the fiscal year.
The upcoming auction will open at 9:00 am and close at 10:00 am London time, with a post-auction option facility available later that day. The gilt, which matures on January 31, 2040, will increase the nominal outstanding amount to £23 billion. Interest is paid semi-annually on January 31 and July 31, with the next payment due on July 31, 2025.
Prospective bidders can submit competitive or non-competitive bids, with details provided in the prospectus and Information Memorandum. The auction is also eligible for the Post Auction Option Facility, allowing an additional purchase of up to 25% of the nominal amount allocated at the auction.
The DMO has specified that the gilt cannot be stripped and reconstituted until further notice. Furthermore, holders can choose to have UK income tax deducted from interest payments upon application to the Registrar.
Investors should note that members of the Approved Group are not permitted to apply for this auction. The DMO’s remit for the 2025-26 fiscal year includes 72 scheduled auctions across different maturities and an additional £40 billion in planned syndication sales, with a total of £299.2 billion in gilt sales planned.
This announcement is based on a press release statement from the UK Debt Management Office.
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