UK sells GBP 900mln 1.125% 2035 I/L Gilt: b/c 4.81x (prev. 3.09x) & real yield --% (prev. 1.673%)

UK sells GBP 900mln 1.125% 2035 I/L Gilt: b/c 4.81x (prev. 3.09x) & real yield --% (prev. 1.673%)

The UK’s latest Gilt auction saw strong demand with a bid-to-cover ratio of 4.81x, significantly up from the previous 3.09x, indicating heightened investor interest. This suggests a robust appetite for inflation-linked bonds in the current environment, and the decreasing real yield could signal expectations for lower inflation or increased demand for safety, which might have implications for rates and broader risk sentiment.