UK Issues GBP 1.25bln in 2035 Index-Linked Gilts as Real Yields Rise
Newsquawk ·
The United Kingdom successfully auctioned GBP 1.25 billion of 1.125% index-linked gilts maturing in 2035, drawing solid investor demand. The bid-to-cover ratio reached 3.62x, strengthening from the previous 3.37x. Meanwhile, the real yield settled at 1.860%, marking an increase compared to the prior 1.725%. In broader market developments, crude oil prices faced downward pressure driven by recovering supply flows through the Strait of Hormuz, persisting despite renewed attacks linked to Saudi Arabia. Additionally, European retail sales for August grew by 0.8% year-on-year, missing the forecasted 1% but improving from July's revised figures, while month-on-month retail sales rose 0.1% against expectations of 0.2%, rebounding from a previous contraction of -0.6%.
AI 시장 분석
In the UK's auction of 1.25 billion pounds of index-linked gilts maturing in 2035, the bid-to-cover ratio rose to 3.62x from the previous 3.37x, and the real yield increased to 1.860%. This demonstrates that demand for government bonds remains robust and acts as an upward pressure on market interest rates. Investors should closely monitor the results of the UK's gilt issuance and interest rate trends.
하락 영향
- Bonds — The rise in real yield to 1.860% at the UK index-linked gilt auction and the absorption of supply exerted downward pressure on existing bond prices.
- Growth Stocks — Rising government bond yields increase the discount rate, compounding valuation pressures in the stock market and negatively impacting growth stocks in particular.
DYAX 전담 분석
In the UK's index-linked gilt auction, the real yield rose to 1.860% and the bid-to-cover ratio recorded 3.62x, showing strong inflows of investment demand. This indicates an increase in bond issuance yields, which could lead to falling bond prices and rising financing costs.
Going forward, the direction of the bond market and growth stocks will likely diverge depending on inflation indicators and volatility in government bond yields, and key indicators such as the Bank of England's monetary policy stance and gilt issuance volume must be monitored.
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