UK says to expand index-linked gilt issuance after strong demand
LONDON, Sept 24
LONDON, Sept 24 (Reuters) - The United Kingdom Debt Management Office said on Tuesday it would sell an extra 750 million pounds ($1.20 billion) of inflation-linked bonds this year following strong demand for a new 2068 index-linked gilt.
The DMO said it now intends to sell 13.25 billion pounds of index-linked gilts via syndication during the 2013/14 financial year, up from an earlier target of 12.50 billion pounds.
It has sold 9.1 billion pounds of index-linked gilts via syndication since the start of the financial year in April, including 5 billion pounds of the new 2068 gilt earlier on Tuesday - more than most external strategists had expected.
Britain's overall gilt issuance plans for 2013/14 remain unchanged, and the total amount of gilts to be sold through small-scale tenders will be reduced by 750 million pounds to 9.25 billion pounds to compensate for the greater sum of index-linked gilts being sold via syndication.
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