LONDON - The UK Debt Management Office (DMO) successfully auctioned £4 billion of 4% Treasury Gilt due in 2031, with competitive bids totaling £11.654 billion, demonstrating a coverage ratio of 2.91 times. The range of accepted bids had yields varying from 4.150% to 4.162%, with the average price set at £99.078.
The auction results, announced today, indicated a robust demand for UK government securities, with the total amount of competitive bids reaching £3.399 billion and non-competitive bids from gilt-edged market makers at £600 million. Additionally, the DMO has made available an extra amount of up to £1 billion of the same stock for successful bidders at the non-competitive allotment price.
The lowest accepted price for the bids was £99.033, and all bids at this price were allotted a proportion of 15.5172%. Bids above this price were fully accepted, while those below were rejected. The 'tail,' the difference in yield between the lowest accepted price and the average accepted price, was a minimal 0.8 basis points.
Successful bidders will have the stock credited to their CREST accounts through member-to-member deliveries on the settlement date. The DMO's operation reflects ongoing efforts to finance government borrowing requirements and manage the national debt efficiently.
This information is based on a press release statement from the UK Debt Management Office.
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