UK attracts robust demand at launch of new 30-year gilt

[LONDON] The launch of a new 30-year British government bond on Tuesday attracted strong demand from investors, according to figures from banks running the syndicated debt sale.

Britain sold £6 billion (S$11.06 billion) of the new 1.25 per cent 2051 gilt and attracted orders worth more than £69 billion - a healthy sum although behind deals last year that saw record orderbooks in excess of £70 billion.

The sale is part of the Debt Management Office's plan to sell £252.6 billion of bonds in the current 2021/22 financial year to help pay for the economic response to the Covid-19 pandemic.

In the previous financial year that ended in March, the DMO sold a record £485.8 billion of gilts.

The July 2051 bond will be priced to yield 1.5 basis points more than the 0.625 per cent October 2050 gilt, the 30-year benchmark bond which currently offers a return of 1.30 per cent.

REUTERS