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Syndicated sale of 50-year gilt attracts 2nd highest demand on record
September 5, 2017 / 3:30 PM / in 2 months

Syndicated sale of 50-year gilt attracts 2nd highest demand on record

LONDON, Sept 5 (Reuters) - Britain’s sale via syndication of a 50-year government bond attracted the second highest amount of orders on record, the United Kingdom Debt Management Office (DMO) said on Tuesday.

Britain sold 4 billion pounds ($5.2 billion) of the 2.5 percent 2065 conventional gilt but attracted orders worth 25.2 billion pounds, the DMO said.

“Once again very strong support was mobilised from our core investor base,” DMO chief executive Robert Stheeman said in a statement. Domestic investors accounted for 90 percent of the allocation, the DMO said.

Earlier, the DMO said that the gilt was sold at a price that gives an average yield of 1.547 percent, equivalent to half a basis point more than the yield of the 3.5 percent 2068 gilt that is used as a benchmark.

Yields on the benchmark 50-year gilt later fell almost 6 basis points on the day to 1.51 percent, and those on the 2065 gilt dropped a similar amount.

The DMO said it expected the final proceeds from the transaction to amount to around 5.3 billion pounds.

HSBC, Morgan Stanley, NatWest Markets and Scotiabank acted as joint bookrunners. ($1 = 0.7682 pounds) (Reporting by Andy Bruce, editing by David Milliken)

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