UK treasury gilt sale attracts strong demand

Published 16/04/2025, 11:32
UK treasury gilt sale attracts strong demand

LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) has successfully completed the sale of £1.5 billion worth of 0⅛% Treasury Gilt 2028, with bids reaching nearly four times the amount offered. The sale, which took place on Wednesday, attracted a total of £5.766 billion in bids, indicating a high level of demand for UK government securities.

The tender process resulted in all bids at the lowest accepted price being allotted in full, with a price of £90.776 and a corresponding yield of 3.631%. No bids below this price were accepted, and the DMO did not retain any residual amount, indicating that the entire amount was distributed among the bidders.

The strong demand was reflected in the coverage ratio of 3.84 times, a metric that shows the number of times the tender was oversubscribed. This ratio is seen as a measure of investor appetite for the gilt.

Following this latest tender, the total amount in issue for the 0⅛% Treasury Gilt 2028 will stand at £33.260 billion nominal from April 17, 2025. The DMO has confirmed that stock allotted to members of CREST, the UK’s securities settlement system, will be credited to their accounts promptly on the settlement date.

This event is part of the UK government’s regular debt management operations and reflects the ongoing process of financing government borrowing by issuing gilts, which are UK government bonds. The information for 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.

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