January 29, 2013 / 10:02 AM / in 5 years

Books on UK 2044 gilt to close at 1000 GMT, orders top 9 bln stg

LONDON, Jan 29 (Reuters) - Britain’s 2044 gilt has attracted more than 9 billion pounds ($14.14 billion) of orders in a syndication that started at 0900 GMT on Tuesday, and books on the transaction will close at 1000 GMT, one of the bookrunners said.

Price guidance was set to give a yield 9.25 basis points above the 2042 gilt, compared to initial guidance of a yield 9.25-9.75 basis points higher.

Strategists expect the UK Debt Management Office to sell 3.5-4.0 billion pounds of the 3.25 percent 2044 gilt, which is likely to become Britain’s next 30-year benchmark.

The syndication is the last one scheduled for a conventional gilt in the 2012/13 financial year, with a further sale of an index-linked gilt planned for the second half of February.

So far the DMO has raised 24.9 billion pounds of its 32.25 billion pound full-year syndication target.

J.P. Morgan, HSBC, Morgan Stanley and Royal Bank of Canada are joint bookrunners for Tuesday’s transaction, with all other gilt-edged market makers (GEMMs) acting as co-lead managers.

While Britain issues most of its debt through auctions, the DMO favours syndications as a way to achieve a better price for less liquid bonds, which are typically new or recently issued long-dated conventional or index-linked gilts.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below