LONDON - The United Kingdom (TADAWUL:4280) Debt Management Office (DMO) has successfully completed the auction of £3.75 billion of 4⅛% Treasury Gilt 2029, indicating robust demand as the offering was oversubscribed by nearly three times. The auction, which took place today, showcased a high level of investor interest, with total bids reaching £10.865 billion.
Competitive bids that exceeded the lowest accepted price were fully allotted, while those below were rejected. The lowest accepted price was £99.042, corresponding to a yield of 4.356%, and the highest accepted price was £99.113, with a yield of 4.339%. The non-competitive allotment price, which represents the rounded average accepted price, was set at £99.075, yielding 4.348%.
In addition to the initial £3.75 billion raised, the DMO has made an additional amount of the stock totaling up to £937.5 million available for purchase at the non-competitive allotment price. This allows successful bidders to increase their holdings at the predetermined price.
Gilt-edged market makers were allotted £562.5 million, with a negligible amount of £0.001 million going to other non-competitive bids. The coverage ratio of 2.90 times—rounded to two decimal places—reflects the ratio of the total bids received to the amount allotted, underscoring the strong appetite for UK government securities.
The DMO has confirmed that the stock allocated to members of CREST, the securities settlement system, will be credited to their accounts on the settlement date.
This financial event is based on a press release statement from the UK Debt Management Office.
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