UK Sees Solid Demand for 30-Year Bond Sale at Higher Yields

The Debt Management Office sold £1 billion ($1.2 billion) of 30-year inflation-linked bonds, which was oversubscribed 3.06 times. That compares to around 3.1 times at the last sale by auction of similar securities a year ago.

UK assets have been hit hardest among developed economies in the recent global bond slide amid mounting concern about government finances and sticky inflation. That sent yields to the highest in decades and took the pound to the weakest level in over a year.

The increase in rates comes at an unfortunate time for the Labour government as it seeks to borrow near-record sums this fiscal year and make good on its manifesto pledges against a darkening market mood. A week ago, an offering of regular 30-year bonds was the least oversubscribed since 2023.

Source: FINANCE