Gilt Auction Sees Strong Demand Despite Global Bond Market Weakness

Dow Jones
08/18

1031 GMT - Tuesday's auction of July 2036 U.K. government bonds delivered strong results despite the current weak performance in global sovereign bonds. "Throughout the ongoing geo-political uncertainty, [U.K.] primary issuance continues to remain strong," Aberdeen investment director Matthew Amis said. The bid-to-cover ratio, which measures investor demand, was 3.65 times. The yield tail was 0.1 basis points, which suggested demand for the gilt was strong. Ten-year gilt yields trimmed their rise to last trade at 5.084%, from 5.090% prior to the gilt auction, Tradeweb data show.

 

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