UK Treasury sells £4.5 billion of 4½% Treasury Gilt 2035 at auction

Published 09/07/2025, 11:16
UK Treasury sells £4.5 billion of 4½% Treasury Gilt 2035 at auction

LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) completed an auction of £4.5 billion ($5.9 billion) of 4½% Treasury Gilt 2035 on Wednesday, with strong demand from investors.

The auction was 2.89 times oversubscribed, attracting £12.98 billion in total bids. The DMO accepted bids at prices ranging from £98.936 to £98.975, corresponding to yields between 4.637% and 4.632%.

Bids at the lowest accepted price received a 92.8% allocation, while competitive bids made at higher prices were allotted in full. The average accepted price was £98.949, representing a yield of 4.635%.

Of the total amount, £3.825 billion was allocated to competitive bids, while gilt-edged market makers received £675 million through non-competitive bids.

An additional amount of up to £1.125 billion will be made available to successful bidders for purchase at the non-competitive allotment price, according to the terms outlined in the Information Memorandum.

The auction’s "tail" - the difference between the yield at the lowest accepted price and the yield at the average accepted price - was 0.2 basis points, indicating relatively consistent pricing across accepted bids.

Stock allotted to members of CREST will be credited to their accounts by member-to-member deliveries on the relevant settlement date, according to the press release statement.

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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