UK sells GBP 3.5bln 4.00% 2029 Gilt: b/c 3.49x (prev. 3.66x), avg. yield 3.810% (prev. 3.821%), tail 0.4bps (prev. 0.3bps)
Newsquawk Staff ·
UK sells GBP 3.5bln 4.00% 2029 Gilt: b/c 3.49x (prev. 3.66x), avg. yield 3.810% (prev. 3.821%), tail 0.4bps (prev. 0.3bps)
What it means
The UK’s recent Gilt auction, with a bid-to-cover ratio of 3.49, shows weaker demand compared to the previous auction's 3.66, indicating some investor hesitancy. The average yield of 3.810% is slightly down from 3.821%, suggesting a modest tightening in terms of yield but the tail of 0.4bps indicates that there might be lingering issues with attracting stronger bids at current pricing.
- [MARKET UPDATE] Limited Gilt reaction on the Chancellor's speech. Upside in Gilts on the DMO remit, size as expected and marked skew away from long-end. OBR commentary then pared some of this.
- UK DMO says gross gilt issuance planned for 2026/27 is GBP 250.6bln (exp. 249.6bln, prev. 246.2bln in April remit)
- Germany sells EUR 3.89bln (exp. 5.5bln) 2036 Bund: b/c 1.15x (prev. 1.16x), average yield 3.37% (prev. 3.58%), retention 29.3% (prev. 24.1%)
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