LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) successfully auctioned £1.5 billion of 0.75% index-linked Treasury gilt due in 2033, according to a press release issued today. The auction was met with strong demand, with total bids reaching £5.087 billion, covering the amount offered 3.39 times.
The striking price for the auction was set at £100.040, with a real yield of 0.745%. All competitive bids at or above this price were accepted, while those below were rejected. The DMO also noted that an additional amount of the stock, totaling up to £375 million, will be available for purchase at the non-competitive allotment price for successful bidders, as outlined in the Information Memorandum.
The inflation-adjusted clean price was calculated using an index ratio of 1.04577, resulting in a price of £104.618831. This price is illustrative and has been displayed to six decimal places for clarity.
Gilt-edged Market Makers were allotted £225 million, and a marginal £0.002 million was allotted to others, totaling £1.5 billion for this latest issuance. The DMO confirmed that stock allotted to members of CREST, the UK's securities settlement system, will be credited to their accounts on the settlement date.
This auction reflects the ongoing management of the UK's debt portfolio, as the DMO continues to fund government borrowing requirements. The information is based on a press release statement from the UK Debt Management Office.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.