LONDON - The UK Debt Management Office (DMO) has successfully completed the auction of £4.25 billion worth of 4⅜% Treasury Gilt 2030. The auction saw competitive bids totaling £12.745 billion, demonstrating a coverage ratio of three times the amount offered, indicating strong investor demand.
The gilts were sold at prices ranging from £99.440 to £99.510, with yields correspondingly ranging from 4.496% to 4.480%. All competitive bids at the lowest accepted price were allotted 91.5% of the amounts they bid for, while those at higher prices were accepted in full. Bids below the lowest accepted price were rejected.
Additionally, the DMO has announced that up to £1.0625 billion of the stock will be available for purchase at the non-competitive allotment price by successful bidders, as per the terms outlined in the Information Memorandum.
The gilts allocated to members of CREST, the securities settlement system, will be credited to their accounts on the settlement date.
This auction is part of the UK government's ongoing debt management strategy, which involves issuing gilts to finance public spending and manage the national debt.
The DMO has not disclosed further details on the bidders or the specific use of the proceeds from this auction. This information is based on a press release statement issued by the UK Debt Management Office.
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