UK sells GBP 4bln 4.125% 2031 Gilt: b/c 3.33x (prev. 3.94x), average yield 4.228% (prev. 4.001%), tail 0.3bps (prev. 0.2bps)
Newsquawk Staff ·
UK sells GBP 4bln 4.125% 2031 Gilt: b/c 3.33x (prev. 3.94x), average yield 4.228% (prev. 4.001%), tail 0.3bps (prev. 0.2bps)
What it means
The UK’s recent gilt auction saw a weaker bid-to-cover ratio at 3.33x, down from the prior 3.94x, indicating less demand among investors. Coupled with an increased average yield of 4.228%, up from 4.001%, this shift suggests growing concerns over inflation and potentially tighter monetary policy, which could influence interest rates and overall market sentiment in the fixed income space.
- [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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