Gold prices edge up after sharp losses; US inflation data awaited
LONDON - The UK Debt Management Office (DMO) successfully auctioned £4.25 billion of 4⅜% Treasury Gilt due in 2028. The auction, which took place today, saw competitive bids exceeding the amount on offer by 3.27 times, indicating robust demand for UK government securities.
The auction’s highest accepted price was £100.336 with a corresponding yield of 4.253%, while the lowest accepted price was £100.298, yielding 4.267%. The non-competitive allotment price, which is the rounded average accepted price, was set at £100.308 with a yield of 4.263%.
Bids at the lowest accepted price were allotted a proportion of 6.8627% of the bid amount. All competitive bids above this price were accepted in full, whereas those below were rejected. The auction also featured a "tail" of 0.4 basis points, a measure of the difference in yield between the lowest and average accepted price.
In addition to the auctioned amount, the DMO will offer up to £1.062.5 million of the gilt for purchase at the non-competitive allotment price. This additional stock is available to the successful bidders as per the terms outlined in the Information Memorandum.
The total competitive bids received amounted to £13.8995 billion, with £3.612499 billion allotted to these bids. Non-competitive bids, which included those from gilt-edged market makers, totaled £637.501 million, bringing the sum of allocated gilts to exactly £4.25 billion.
Funds from the sale of the gilts will be credited to the accounts of CREST members via member-to-member deliveries on the settlement date as specified.
The successful completion of this gilt auction reflects the continued investor confidence in the UK’s government bonds. This event, based on a press release statement, adds to the UK’s financial strategies in managing national debt.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.