LONDON, Nov 26 Reuters Britain received a record 65 billion pounds 82 billion of orders for a 30year inflationlinked government bond on Tuesday, bookrunners on the transaction said.
The United Kingdom Debt Management Office is set to issue 4.25 billion pounds of the November 2054 indexlinked gilt , which has a 1.25 coupon, taking the total amount in issue to 12.75 billion pounds.
The strong order flow at the syndication is just above the 64 billion pounds received when the bond was last sold via syndication in July, which was a record for an indexlinked gilt.
The 1.25 indexlinked 2054 gilt has been priced to yield 4 basis points more than the November 2055 indexlinked gilt , representing a price at the top end of initial price guidance, as is usual for British gilt syndications.
Barclays, Bank of America, Citi and NatWest Markets are acting as joint leads on the transaction.
Last month the UK DMO revised up its 202425 gilt issuance plans by 19.2 billion pounds to 296.9 billion pounds to accommodate new finance minister Rachel Reeves39; spending plans, including a 1.3 billion increase in indexlinked syndications.
British government bond yields have largely reversed their sharp rise after the Oct. 30 budget, which had been prompted by reduced expectations of BoE rate cuts and concerns about U.S. President Donald Trump39;s reelection.
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Reporting by David Milliken; editing by Sarah Young and Andy Bruce
Source Reuters