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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)

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