LONDON - The UK Debt Management Office (DMO) announced it will auction £4 billion of the 4¼% Treasury Gilt 2034 on Wednesday, January 15, 2025, with settlement taking place the following day. This issuance will increase the nominal outstanding amount of the gilt to £34.6 billion.
The auction will open at 9:00 am London time and close at 10:00 am, with a post-auction option facility available between 12:30 pm and 1:00 pm, allowing for the purchase of additional gilts up to 25% of the allocated amount at auction.
Interest on the gilt is payable gross, with the next payment due on January 31, 2025, at a rate of £2.697115 per £100 nominal. The gilt, which matures on July 31, 2034, is not eligible for stripping and reconstitution until the DMO specifies otherwise.
Bidders have the option to submit competitive or non-competitive bids, following the procedures outlined in the prospectus and the Information Memorandum. Gilt-edged Market Makers can bid via the Bloomberg Bond Auction System within the specified auction times.
The DMO has provided a prospectus for the auction, available on its website, along with an Information Memorandum detailing the issue, stripping, and reconstitution of British Government Stock, dated March 28, 2024, and formulas for calculating gilt prices from yields, updated on December 18, 2024.
This auction is part of the gilt sales for the financial year 2024-25, the progress of which can be tracked in the 'Responsibilities – Financing Remit' section of the DMO website. The auction is restricted, not allowing applications from members of the Approved Group of Investors.
The information is based on a press release statement from the UK Debt Management Office.
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