LONDON – The UK Debt Management Office (DMO) announced it will auction £4 billion of the 4¼% Treasury Gilt 2034 on Wednesday, December 11, 2024. The gilt, which has a maturity date of July 31, 2034, will increase the nominal outstanding amount to £30.6 billion post-auction.
This forthcoming auction is part of the UK government’s financing operations and the gilts are fungible with previous issues. The auction is scheduled to open at 9:00 am and close at 10:00 am London time. Following the auction, a Post Auction Option Facility will be available from 12:30 pm until 1:00 pm, allowing for the purchase of an additional amount of the Gilt up to 25% of the nominal amount allocated at the auction.
Interested parties can bid on either a competitive or a non-competitive basis, with bids being fully paid at the bid price. Accrued interest payable with the bid is set at £2.119669732441 per £100 nominal. The next interest payment date is scheduled for January 31, 2025, with a long first coupon of £2.697115 per £100 nominal.
The gilt in question is not strippable, meaning it cannot be broken down into its individual interest and principal components. The DMO has specified that the gilt will remain in this format until further notice is provided. The ISIN code for this gilt is GB00BQC82C90, and the SEDOL code is B-QC8-2C9.
Documentation related to the auction, including the prospectus, is available on the DMO’s Gilt Market Publications webpage. The Information Memorandum, which details the issue, stripping, and reconstitution of British Government Stock, can also be accessed online.
The DMO has clarified that applications for this auction may not be made by members of the Approved Group of Investors. A table showing the progress of gilt sales for the current financial year is available on the DMO website and is updated after each gilt sales operation.
This news is based on a press release statement from the UK Debt Management Office.
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