UK govt sells 50-year bond at record low

Portfolio-Fixed-Income-Bonds-Currency-UK-700x450.jpgThe UK Government has sold a 50-year inflation-linked bond at a record low rate.

The UK Debt Management Office offered £2.5bn of inflation-linked bonds, maturing in 2065, at a negative real yield of -1.3245 per cent.

The debt issue was oversubscribed, attracting offers of £10.1bn, with 93 per cent of buyers coming from the domestic UK market.

Coupons on the 0.25 per cent Index-linked Treasury Gilt 2065 are linked to the retail price index measure of inflation.The bond was priced at £201.335 per £100 nominal, leading to the negative gross redemption yield.

The £5.1bn generated from the sale takes the total index-linked gilt sales for the year-to-date to £15.1bn, while total gilt sales were £51.6bn in the period.