U.K. DMO Says Overseas Investors Bought 15% of 30-Year Gilts

Overseas investors bought 15 percent of the 30-year U.K. government bonds sold via banks today, the second-largest allocation to foreign buyers on record, the Debt Management Office said.

The agency sold 4 billion pounds ($6.3 billion) of 3.25 percent gilts due in 2044 after receiving orders totaling 9.7 billion pounds, it said in a statement today. The security was sold at a yield of 3.4185 percent.

“As one would expect, given the maturity of the bond on offer, our core domestic investor base took the great majority of the allocations,” Robert Stheeman, the DMO chief executive, said in the statement. “But I was also pleased to see overseas participation at 15 percent, the second highest such allocation in our syndication programme to date.”

The last time the allocation to overseas investors was higher was on May 29 when the debt agency sold inflation- protected bonds maturing in 2062. Foreign investors bought 17 percent of those securities, Steve Whiting, a spokesman at the London-based DMO, said in an interview today.

Thirty-year gilts rose, pushing the yield two basis points, or 0.02 percentage point, lower to 3.32 percent as of 3:55 p.m. in London.

Sales by so-called syndication have raised 28.8 billion pounds in the fiscal year that will end on March 30. The final syndicated offering will be for an index-linked gilt in the second half of next month, the debt agency said.

The Debt Management Office is expected to sell 164.2 billion pounds of gilts this year, the lowest amount since the fiscal year ending in March 2009.

To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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