UK Treasury Gilt auction raises £3 billion

Published 27/03/2025, 12:20
UK Treasury Gilt auction raises £3 billion

LONDON - The UK Debt Management Office (DMO) has successfully completed the auction of £3 billion in 4% Treasury Gilt, maturing in 2031. The auction, which took place on Thursday, saw competitive bids totaling £9.302 billion, indicating a strong demand with the auction being oversubscribed by 3.10 times.

The gilts were sold at prices ranging from £97.060 to £97.110, corresponding to yields from 4.522% to 4.513%. The lowest accepted price had a yield of 4.522%, while the average price of the accepted bids, which also serves as the non-competitive allotment price, was set at £97.085, yielding 4.517%.

In the competitive bidding process, all bids at the lowest accepted price were allotted 27.7108% of the amount they bid for. Bids above this price were accepted in full, while those below were rejected. The DMO also made an additional £750 million of the stock available for purchase at the non-competitive allotment price to successful bidders, as per the terms outlined in the Information Memorandum.

Gilt-edged market makers were allocated £450 million, and a nominal amount of £0.002 million was allocated to other non-competitive bids, totaling the £3 billion issuance. Settlement for members of CREST, the securities depository, will be arranged through member-to-member deliveries on the designated settlement date.

The auction results reflect the market’s appetite for UK government debt and provide an indication of investor confidence in the country’s economic outlook. The issuance is part of the government’s ongoing program to finance public spending and manage the national debt.

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.