Live Updates > Live Update Details
2025-07-29 17:04:40
[Surge in Demand for UK Gilts: A Market Frenzy for High-Yield Bonds?] ⑴ On the afternoon of July 29th (Beijing time), the UK Debt Management Agency successfully sold £5 billion of 4.375% conventional gilts maturing in 2028. ⑵ The auction received a subscription multiple of 3.71 times, significantly higher than the 3.46 times in the previous auction on July 2nd, demonstrating strong market demand for UK gilts. ⑶ The lowest accepted yield was 3.943%, a slight increase from 3.848% in the previous auction, reflecting investors' preference for higher yields. ⑷ The yield tail in this auction was 0.2 basis points, while the price tail was 0.5 ticks, indicating a high concentration of bid prices. ⑸ Despite the slight increase in yield, the total bid amount of £18.533 billion far exceeded the offering size, confirming the strong market interest in short-term high-yield bonds. (6) The auction results send a positive signal, demonstrating ample market liquidity and investor confidence in the UK government's ability to repay its debts. (7) The key point is that, amidst the current backdrop of heightened market uncertainty, the appeal of high-yield bonds is significantly increasing.
