UK sells GBP 2.25bln 4.75% 2035 Treasury Gilt: b/c 3.50x (prev. 3.63x), average yield 4.911% (prev. 4.585%), tail 0.2bps (prev. 0.2bps)

The UK Treasury's recent gilt auction saw lower demand with a bid-to-cover ratio of 3.50x compared to the previous 3.63x, indicating reduced investor appetite. The rise in the average yield to 4.911% from 4.585% signals increasing borrowing costs, reflecting broader market sentiments around inflation and tightening monetary conditions. This sequential drop in demand could suggest caution among investors, potentially impacting future gilt issuance and rate expectations.