The United Kingdom sold £4.25 billion of its 2036 government bonds on Oct. 20 at a higher yield than in September, even as bids covered the auction by a wider margin.
The United Kingdom Debt Management Office said the 4⅞% Treasury Gilt 2036 sold at an average accepted yield of 5.418%. The yield was 5.383% when the same gilt was auctioned on Sept. 29.
Bids totaled £15.3305 billion at the latest sale, or 3.61 times the amount sold. That compares with a bid-to-cover ratio of 3.34 at the September auction. The ratio measures bids against the value of bonds sold.
The two auctions involved the same gilt, allowing a direct comparison of their yields and bid coverage. The higher coverage shows that bids rose relative to the amount sold, while the higher accepted yield shows that the government paid more to borrow through this sale.
The Bank of England’s next monetary policy announcement is scheduled for Nov. 5.
