LONDON, Nov 29 (IFR) - The United Kingdom Debt Management Office has set the spread on a new 40-year inflation-linked bond at 2bp over its outstanding 2058 linker, according to a lead.
This is at the tight end of the plus 2-2.75bp guidance released earlier on Tuesday.
Demand for the deal is in excess of £10.5bn, including £2.7bn of interest from the joint lead managers.
Order books are expected to close at 10:00am London.
The November 2056 deal is expected to have a benchmark size and will pay a coupon of 0.125%.
Bank of America Merrill Lynch, Deutsche Bank, Morgan Stanley (B&D) and Scotiabank are running the Reg S deal, which will price on Tuesday.
The UK is rated Aa1 by Moody’s and AA by S&P and Fitch, all with a negative outlook. (Reporting by Michael Turner, Editing by Helene Durand)