UK’s £5 billion treasury gilt auction attracts strong demand

Published 08/10/2025, 11:56
UK’s £5 billion treasury gilt auction attracts strong demand

LONDON - The United Kingdom Debt Management Office (DMO) announced on Wednesday that its auction of £5 billion ($6.5 billion) of 4% Treasury Gilt 2029 has been successfully allocated with strong investor demand.

The auction was oversubscribed by nearly three times, with total bids received reaching £14.62 billion against the £5 billion offering, representing a coverage ratio of 2.92 times, according to a press release statement.

Competitive bids accepted at the lowest price were allotted 77.33% of the amount bid for, while bids made at prices above the lowest accepted price were allotted in full.

The accepted price range for the gilt, which has the ISIN code GB00BVP99566, was between £99.65 and £99.699, corresponding to yields between 4.103% and 4.089%. The non-competitive allotment price, calculated as the rounded average accepted price, was £99.678, yielding 4.095%.

Of the total amount, £4.25 billion was allotted to competitive bids, while £750 million went to gilt-edged market makers through non-competitive bids.

The auction showed a tail of 0.8 basis points, calculated as the difference between the yield at the lowest accepted price and the yield at the average accepted price.

An additional amount of the stock totaling up to £1.25 billion will be made available to successful bidders for purchase at the non-competitive allotment price, in accordance with the terms of the Information Memorandum.

The DMO noted that stock allotted to members of CREST will be credited to their accounts by member-to-member deliveries on the relevant settlement date.

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