UK sells GBP 500mln 0.125% 2028 Gilt via Tender: b/c 4.05x (prev. 3.77x), average yield 3.336% (prev. 3.443%), tail 0.7bps (prev. 0.6bps)
Newsquawk Staff ·
UK sells GBP 500mln 0.125% 2028 Gilt via Tender: b/c 4.05x (prev. 3.77x), average yield 3.336% (prev. 3.443%), tail 0.7bps (prev. 0.6bps)
What it means
The UK’s recent gilt auction, with a stronger bid-to-cover ratio compared to the previous auction, indicates solid investor demand despite a slight increase in yield. The reduced average yield suggests a favorable issuance environment, but the slight tail indicates some price pressure. This could reflect a cautious stance towards duration as market participants weigh future rate expectations and inflation impacts.
- [MARKET ANALYSIS] UK Budget, 2026: No fireworks from Chancellor Healey, major reform kicked to 2027+, DMO skewed away from the long-end once again
- [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%)
- [MARKET ANALYSIS] Antipodeans diverge as AUD saw strong CPI and NZD slumped on a surprise RBNZ hold, DXY awaits the Fed
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