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Investing.com -- The United Kingdom (TADAWUL:4280) is preparing to sell a record amount of 10-year bonds, with the total value reaching $16 billion, according to a Tuesday report by Bloomberg. This comes after the securities attracted an unprecedented level of demand from investors aiming to secure yields while they are near their highest levels in multiple decades.
The UK government has received orders exceeding $175 billion for the new debt. The sale is being carried out through banks in a syndication process.
This sale surpasses a previous record for demand for gilt, which was established less than a month ago. It demonstrates the strong investor desire to take advantage of the current yield levels as the Bank of England continues its trend of reducing interest rates.
This high demand is also indicative of traders’ willingness to look past concerns about fiscal integrity and surplus supply that had previously troubled the UK government and bond market at the beginning of the year, leading to a significant increase in yields.
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