Login ID:
Partner Login
Contact Us : 7066511911

Reopening of 2026 Inflation-Linked Gilt Well-Received

27 Jun 2017 10:11 am

By Tasos Vossos

LONDON--The U.K. Management Office sold an additional 1 billion pounds ($1.27 billion) of the 0.125% 2026 bond Tuesday in an auction that was more than three times oversubscribed.

The deal was struck at a real, or inflation-adjusted, yield of minus 1.969%. Bids amounted to almost GBP3.1 billion.

Analysts at Societe Generale said that the long period since the last offering in mid-February meant there would be some pent-up demand.

Fears that the scheduled re-opening of this bond in August would "reduce the urgency" to bid in Tuesday's offering proved baseless.

The offering came as recent weakness in crude oil prices weigh on inflation expectations globally.

Write to Tasos Vossos at tasos.vossos@wsj.com

(END) Dow Jones Newswires

June 27, 2017 06:11 ET (10:11 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Top 5 Special Reports
USD/INR (Jan. 20) Testing Short-term Support Near 70...
USD/INR (Jan. 20) Testing Range Support Near 70.80
USD/INR (Jan. 20) Testing Range Support Near 70.80
China Commits Purchase Of $50 Billion Worth U.S. Agri P...
USD/INR (Jan. 20) Weak Price Trend Testing Range S...