Books on Britain's 2060 gilt sale to open Tues

Order books for Britain's planned syndicated sale of 50-year gilts will open at around 0900 GMT on Tuesday, an official at bookrunner RBC said.

Books on Britain's 2060 gilt sale to open Tues

Order books for Britain's planned syndicated sale of 50-year gilts will open at around 0900 GMT on Tuesday, an official at bookrunner RBC said on Monday.

The sale will be Britain's first re-opening of a syndicated gilt, and analysts expect it to raise around 3.5 billion pounds ($5.4 billion).

The 2060 conventional gilt was launched last October with an initial offering of 7 billion pounds in what was Britain's biggest sale of ultra-long gilts on record.

Britain's Debt Management Office said in December that it aimed to raise around 30 billion pounds through syndicated gilt issuance in the financial year ending on April 5. So far, it has raised 26.5 billion pounds.

While expectations in the market have centred on a 3.5 billion pound offering on Tuesday, sources familiar with the deal said the it could be bigger if demand were strong. They stressed the DMO's 30 billion pound target was a "working assumption" rather than a precise cut-off point.

When the 2060 gilt was launched last October, it was heavily oversubscribed and was priced to yield two basis points less than the 2055 gilt. Tuesday's sale is expected to be priced versus the same benchmark.

All other Gilt-Edged Market Makers had been invited to act as co-lead managers.

Reuters

Last Mod: 22 Şubat 2010, 18:45
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