UK sells GBP 1bln 0.125% 2028 Gilt via tender: b/c 4.28x (prev. 4.05x), average yield 4.219% (prev. 3.336%), tail 0.3bps (prev. 0.7bps)

The UK’s sale of GBP 1 billion in 0.125% 2028 Gilts via tender saw a stronger bid-to-cover ratio compared to the previous auction, indicating robust demand. However, the average yield has increased significantly, suggesting a rise in borrowing costs and potential shifts in market sentiment regarding future rate directions. The low tail indicates that the auction was well-received, reflecting stable investor appetite despite higher yields.