The UK sells GBP 5bln 4.00% 2029 Gilt: b/c 3.42x (prev. 3.35x), average yield 4.463% (prev. 4.238%), tail 0.3bps (prev. 0.2bps)

The UK sells GBP 5bln 4.00% 2029 Gilt: b/c 3.42x (prev. 3.35x), average yield 4.463% (prev. 4.238%), tail 0.3bps (prev. 0.2bps)

The UK’s recent gilt auction indicates strong demand, with a bid-to-cover ratio of 3.42x, slightly up from the previous auction. However, the average yield of 4.463% represents a notable increase from the last auction, suggesting rising borrowing costs. This shift could reflect market concerns over inflation or a change in expectations regarding the Bank of England's rate path, impacting broader rates and risk sentiment.