UK sells 5 bln stg of new 55-year inflation-linked bond
LONDON, Sept 24
LONDON, Sept 24 (Reuters) - Britain has raised around 5 billion pounds ($8 billion) at the launch of its longest-ever inflation-linked bond on Tuesday after strong investor demand, one of the bookrunners handling the transaction said.
Investors put in orders worth more than 10 billion pounds for the 0.125 percent 2068 index-linked gilt, which sold at a price equivalent to a yield 1 basis point lower than that of the longest linker currently in issue, which matures in 2062 .
It is rare for longer-dated bonds to offer yields lower than those of shorter maturities, and the pricing is at the top end of initial guidance offered by the banks handling the transaction on behalf of the UK Debt Management Office.
Orders totalling around 5 billion pounds in nominal terms have been accepted, and the DMO is due to announce final pricing of the bond and the exact amount raised later on Tuesday.
Strategists had expected Britain to sell around 4 billion pounds of the new government bond. Barclays, Deutsche Bank, HSBC and Morgan Stanley are joint lead bookrunners on the deal.
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