LONDON - The UK Debt Management Office (DMO) has announced an upcoming auction of £4.25 billion nominal of the 4⅜% Treasury Gilt 2028, scheduled for Thursday, January 23, 2025. The auction will commence at 9:00 am and close at 10:00 am London time, with the issue and settlement date set for the following day, Friday, January 24, 2025.
Investors will pay accrued interest of £0.858080110497 per £100 nominal upon bidding. The gilt in question, identified by ISIN GB00BSQNRC93 and SEDOL B-SQN-RC9, will have a nominal outstanding amount of £8,318.8 million after the auction. This gilt is not strippable, meaning its individual cash flows cannot be separately traded, and will mature on March 7, 2028.
Interest is payable gross on March 7 and September 7 annually, with the next payment due on March 7, 2025, amounting to £1.365677 per £100 nominal. This upcoming payment is termed as a short first coupon due to the interest being calculated for a shorter period than the standard six months.
The DMO also stated that bids could be placed on a competitive or non-competitive basis, in accordance with the terms outlined in the prospectus and Information Memorandum. Gilt-edged Market Makers are allowed to bid through the Bloomberg Bond Auction System.
Additionally, the auction includes a Post Auction Option Facility, which permits an additional amount of the Gilt, equivalent to 25% of the nominal amount allocated at the auction, to be purchased under certain conditions detailed in the Information Memorandum.
The DMO has made the prospectus for the auction available on its Gilt Market Publications webpage, along with the Information Memorandum relating to the Issue, Stripping and Reconstitution of British Government Stock, and the formulae for calculating gilt prices from yields.
This move is part of the UK's ongoing debt management strategy, and the DMO has excluded applications from members of the Approved Group of Investors for this auction. A table showing the progress of gilt sales in the current financial year is available in the 'Responsibilities – Financing Remit' section of the DMO website.
The information for this auction 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.