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LONDON - The UK Debt Management Office (DMO) has successfully completed the sale of £1.5 billion worth of 0⅛% Treasury Gilt due in 2026, with bids far exceeding the amount on offer. The sale attracted £8.004 billion in total bids, achieving a coverage ratio of 5.34 times.
The range of accepted bids for the gilt, which is a government bond, displayed a highest accepted price of £96.370 and a yield of 3.871%. The average price of the accepted bids was slightly lower at £96.354, corresponding to an average yield of 3.888%. The lowest accepted price came in at £96.350 with a yield of 3.892%. The difference in yield between the lowest and average accepted prices, known as the tail, was minimal at 0.4 basis points.
In the competitive bidding process, all bids at the lowest accepted price were partially filled, with investors receiving 74.2574% of the amount they bid for. Bids above the lowest accepted price were fully allotted, while those below were rejected.
Following the tender, the new total nominal amount in issue for this specific gilt will be £41,177.698 million starting from January 31, 2025. The DMO has stated that the stock allotted will be credited to CREST members’ accounts through member-to-member deliveries on the settlement date.
This recent gilt sale indicates a robust appetite for UK government debt, as evidenced by the high bid-to-cover ratio. The DMO’s announcement, based on a press release statement, provides key details without promotional language, focusing on the factual results of the tender process.
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