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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.
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