UK sells GBP 5bln 4.00% 2029 Treasury Gilt: b/c 3.35x (prev. 3.49x), avg. yield 4.238% (prev. 3.810%), tail 0.2bps (prev. 0.4bps)

The UK Treasury's recent auction of GBP 5 billion in 4.00% 2029 Gilts saw a bid-to-cover ratio slightly decline from 3.49x to 3.35x, indicating a weaker demand relative to the previous auction. However, the average yield increased to 4.238% from 3.810%, reflecting a shift in market expectations, potentially influenced by rising rates. The minor tail of 0.2bps suggests that the auction was fundamentally well-received despite the drop in demand, which could impact investor sentiment towards UK bonds moving forward.