UK issues government bonds at highest yield since at least 1998

BlockBeats News, September 8 - According to Bloomberg, the UK has re-issued £4.25 billion of gilts maturing in 2056, with an issuance yield of 5.8168%, marking the highest level paid by the UK government on debt issuance since at least the establishment of the UK Debt Management Office in 1998.

Sources familiar with the matter said the pricing of this transaction was 0.75 basis points higher than the yield on the 4.25% coupon gilt maturing in December 2055. The issuance ultimately attracted £85 billion in subscriptions, with a subscription ratio of 20 times, and the gilt carries a coupon of 5.375%. The joint lead managers for this transaction were BofA Securities, Goldman Sachs International Bank, JPMorgan, Santander, and UBS Investment Bank.