UK DMO Allots £1.60 Billion of 2035 Index-Linked Gilt

Key facts

• UK DMO allotted £1.60 billion of 1⅛% Index-Linked Treasury Gilt 2035.
• The gilt matures in 2035.
• The real yield was 1.515%.
• The real clean price was £96.630.
• Total bids amounted to £5.353 billion.
• The bid-to-cover ratio was 3.35.

The UK Debt Management Office (DMO) on Wednesday allotted £1.60 billion of the 1⅛% Index-Linked Treasury Gilt 2035. The gilt, which matures in 2035, was sold at a real yield of 1.515% and a real clean price of £96.630. This price is equivalent to an inflation-adjusted clean price of £101.776514, based on an index ratio of 1.05326. Total bids for the gilt amounted to £5.353 billion, resulting in a bid-to-cover ratio of 3.35. Competitive bids accepted at the striking price were allotted 14.2857% of the amount bid, while bids above the striking price were allotted in full and bids below it were rejected. Of the total amount sold, £1.360 billion was allotted to competitive bids and £240 million to non-competitive bids. The DMO stated that an additional amount of up to £400 million of the stock will be available to successful bidders for purchase at the non-competitive allotment price.