Successful auction sees increased bid-to-cover ratio and decreased average yield

  • U.K. sells GBP4 billion in June 2028 gilt
  • Auction results: Amount on offer – 4.0 billion GBP, Bids received – 11.4 billion GBP, Bids accepted – 4.0 billion GBP
  • Bid-to-cover ratio increases to 2.86 from 2.53 in the previous auction
  • Average yield decreases to 3.946% from 4.041% in the previous auction
  • Settlement date: January 25, 2024

The U.K.’s Debt Management Agency successfully sold 4 billion pounds ($5.07 billion) in June 2028 dated gilts at an auction on Wednesday. The auction results showed that the amount on offer was 4.0 billion GBP, with bids received totaling 11.4 billion GBP. However, only 4.0 billion GBP worth of bids were accepted. The bid-to-cover ratio for this auction increased to 2.86 from 2.53 in the previous auction, indicating strong demand. Additionally, the average yield for the June 2028 gilt decreased to 3.946% from 4.041% in the previous auction, suggesting lower borrowing costs for the U.K. government. The settlement date for this auction is January 25, 2024.

Public Companies:
Private Companies: undefined
Key People: Miriam Mukuru (Writer)

Factuality Level: 8
Justification: The article provides factual information about the U.K.’s Debt Management Agency selling 4 billion pounds in June 2028 dated gilts at an auction. The figures and data from the auction are also provided. However, the article lacks context and analysis, and it is very brief.

Noise Level: 3
Justification: The article provides factual information about the U.K.’s Debt Management Agency selling gilts at an auction. It includes details such as the amount on offer, bids received and accepted, bid-to-cover ratio, average yield, average price, maximum yield, and settlement date. However, it lacks analysis, context, and actionable insights, making it a relatively low-value article.

Financial Relevance: Yes
Financial Markets Impacted: Debt markets

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article provides information on the U.K.’s Debt Management Agency selling 4 billion pounds in gilts at an auction. This information is relevant to financial markets, specifically the debt markets.

Reported publicly: www.marketwatch.com