Britain offered and sold £4.25 billion of conventional gilts that mature in 2031 on Wednesday, with the auction clearing at a lowest accepted price of 99.317, equivalent to a yield of 4.286%.
Bidders submitted a total of £14.75 billion in offers, producing a bid-to-cover ratio of 3.47. That level of demand compares with the previous sale on May 12, 2026, when the bid-to-cover ratio stood at 3.36.
The range of accepted prices was narrow. The highest accepted price was 99.332, corresponding to a yield of 4.282%, while the non-competitive price was set at 99.323, yielding 4.284%.
The auction metrics showed a small yield tail of 0.1 basis points and a price tail of 0.6 ticks. Competitive bids received an allocation totaling £3.61 billion, with 75% of that competitive allocation assigned at the lowest accepted price.
Non-competitive bids allocated to gilt-edged market makers amounted to £637.5 million. Other non-competitive bids received no allocation.
The gilt on offer carries a 4.125% coupon and delivered noticeably firmer pricing relative to the May auction. In that earlier sale the lowest accepted price had been 97.740, with a yield of 4.653%.
The auction results indicate concentrated acceptance at the lowest price point and a small tail in yields, while non-competitive allocations were concentrated toward market makers. Beyond those observable facts, the auction data do not provide further detail on the identity of competitive bidders or on any subsequent secondary market trading.
Summary
The UK sold £4.25 billion of 2031 conventional gilts, drawing £14.75 billion of bids and a bid-to-cover of 3.47. Pricing tightened compared with the May auction, with the lowest accepted price at 99.317 (4.286%) and the highest at 99.332 (4.282%). Non-competitive allocations went principally to gilt-edged market makers.