UK sells GBP 4.25bln 4.75% 2035 Gilt: b/c 3.63x (prev. 3.26x), average yield 4.585% (prev. 4.456%), tail 0.2bps (prev. 0.3bps)

The UK’s recent sale of GBP 4.25 billion in 4.75% 2035 Gilts indicates strong demand, reflected in a bid-to-cover ratio of 3.63x, significantly higher than the previous 3.26x.

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UK sells GBP 4.25bln 4.75% 2035 Gilt: b/c 3.63x (prev. 3.26x), average yield 4.585% (prev. 4.456%), tail 0.2bps (prev. 0.3bps)

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Context

The uptick in the average yield to 4.585% from 4.456% shows the market's adjustment to rising rates, while a reduced tail suggests more competitive bidding. This could imply increasing investor caution about future rate paths, impacting broader fixed income and equities market sentiment.

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