LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) successfully completed the auction of £2.25 billion of 4⅜% Treasury Gilt 2054, with competitive bids exceeding the amount on offer by three times, indicating robust investor demand for British government debt.
The auction, which took place on Tuesday, saw a total of £6.748 billion in bids received, demonstrating a healthy appetite for the long-dated bonds. The gilts were sold at prices ranging from £94.050 to £94.166, corresponding to yields of 4.751% to 4.743%, respectively. The lowest accepted price saw 45.0000% of the amount bid for, while competitive bids above this price were fully allotted.
In addition to the competitive bids, the DMO allotted £316 million to gilt-edged market makers on a non-competitive basis, with no allocation made to other bidders. The non-competitive allotment price, which is the rounded average accepted price, was set at £94.107, yielding 4.747%.
The DMO also announced the availability of an additional £562.5 million of the stock for purchase at the non-competitive allotment price for successful bidders, as outlined in the Information Memorandum.
The settlement of the gilts will be processed through member-to-member deliveries in CREST on the relevant settlement date.
This auction result is based on a press release statement and reflects the UK government's ongoing efforts to finance its debt. The gilts market is a critical component of the UK's financial system, providing a benchmark for other UK debt and influencing the cost of borrowing for the government. The successful auction underscores investor confidence in the UK's economic standing and fiscal policies.
The data from this event is crucial for financial market participants, as it provides insights into demand for UK government debt and the market's view on the country's long-term economic prospects.
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