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LONDON - The UK Debt Management Office (DMO) announced an upcoming auction for £4.25 billion of the 4% Treasury Gilt 2031, scheduled for Wednesday, May 21, 2025. The issuance is part of the government’s ongoing debt management strategy and will increase the nominal outstanding amount of this gilt to £32.102 billion.
The auction will open at 9:00 am and close at 10:00 am London time, with the settlement date set for the following day, May 22, 2025. Bidders have the option to submit their bids on a competitive or non-competitive basis, adhering to the fully paid bid price convention. Additionally, the DMO has outlined a Post Auction Option Facility, which allows for the purchase of up to an additional 25% of the nominal amount allocated at the auction. This facility will be open from 12:30 pm until 1:00 pm on the day of the auction.
Interest on the gilt is payable gross on April 22 and October 22 each year, with the next payment due on October 22, 2025. The gilt, identified by the ISIN Code GB00BPSNBF73 and SEDOL Code B-PSN-BF7, is non-strippable, meaning it cannot be broken down into individual interest and principal components.
Investors should note that accrued interest payable with the bid amounts to £0.327868852459 per £100 nominal. The DMO also specifies that holders can choose to have UK income tax deducted from interest payments if they wish, by applying to the Registrar, Computershare Investor Services PLC.
The DMO’s announcement includes a reference to the prospectus for the auction, which is available on the DMO’s Gilt Market Publications webpage, as well as the Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock, dated April 1, 2025. The documentation provides further details on the procedures for the auction and the Post Auction Option Facility.
This information is based on a press release statement from the UK Debt Management Office.
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