UK Long-Dated Bonds Rally as Sales Are Slashed to Record Low

UK long-dated bonds rallied after the nation reduced planned sales of such securities even further, soothing investor concerns over demand for the debt and potentially lowering the nation’s borrowing costs.

The yield on 30-year gilts fell as much as 12 basis points to 5.25% after the Debt Management Office said it would cut long-dated bond sales to £29.8 billion ($39.6 billion) from £40 billion previously. That reduces the share of these notes in total sales to just 10%, the lowest in the history of the DMO, from 13.4% in March and 18% a year ago.