LONDON - The UK Debt Management Office (DMO) announced it will auction £3 billion of the 4% Treasury Gilt 2031 on March 27, 2025. The auction will commence at 9:00 am and close at 10:00 am London time, with an issue and settlement date set for the following day, March 28.
This issuance is part of the government’s ongoing debt management strategy and will increase the nominal outstanding amount of this security to £26,743.0 million. The gilt, which has a maturity date of October 22, 2031, will pay interest semi-annually on April 22 and October 22, with the next payment due on April 22, 2025.
Investors participating in the auction will pay accrued interest of £1.725274725275 per £100 nominal. The DMO has also provided a post-auction option facility, allowing successful bidders to request up to an additional 25% of the nominal amount allocated to them at the auction. This facility will be open from 12:30 pm to 1:00 pm on the auction day.
The gilt, identified by ISIN GB00BPSNBF73 and SEDOL B-PSN-BF7, is not eligible for stripping and reconstitution until further notice from the DMO. Bidding can be conducted on a competitive or non-competitive basis, with details outlined in the prospectus and the Information Memorandum.
The DMO has made the prospectus for this auction available on their Gilt Market Publications webpage. Additionally, the Information Memorandum concerning the issue, stripping, and reconstitution of British Government Stock, along with the formulae for calculating gilt prices from yields, can be accessed through the DMO’s official website.
This auction follows the DMO’s established schedule of gilt sales for the financial year 2024-25, which is updated after each sales operation and is part of the UK’s broader fiscal strategy. This information is based on a press release statement from the UK Debt Management Office.
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