Bitcoin price today: hits record high over $124k on rate cut bets, corporate cheer
LONDON - The UK Debt Management Office (DMO) successfully auctioned £2 billion of 4¾% Treasury Gilt due in 2043, indicating sustained investor demand for British government securities. The auction, which took place on Tuesday, saw competitive bids exceeding the amount on offer by nearly three times, with a total of £5.94 billion in bids received.
The auction results show that all bids accepted at the lowest price were allotted 92% of the amount bid for. Bids above this lowest accepted price were fully allotted, while those below were rejected. The highest accepted bid came in at £94.402 with a yield of 5.224%, and the lowest at £94.263 yielding 5.236%. The non-competitive allotment price, which is the rounded average accepted price, was set at £94.318 with a yield of 5.232%.
In addition to the competitive bids, £300 million was allotted to gilt-edged market makers on a non-competitive basis, with no allotment to others. The DMO also announced that up to an additional £500 million of the stock will be made available to successful bidders at the non-competitive allotment price.
The coverage ratio of 2.97 times indicates a robust appetite for UK government debt, despite the economic challenges and uncertainties facing global markets. The DMO’s efficient handling of the auction reflects the UK’s continued ability to fund its borrowing requirements at competitive rates.
The Treasury Gilt will be credited to members of CREST, the UK’s securities settlement system, ensuring a smooth transaction and settlement process for participants.
This auction’s outcome is based on a press release statement from the UK Debt Management Office.
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