Budget worries hit UK debt sales as investors ‘lose patience with uncertainty’
Demand for UK government debt has weakened this week, as pressure builds on the government ahead of the autumn budget.
A sale of nine-year UK bonds this morning has attracted fewer bids than a similar tender back in July.
The UK debt management office succeeded in selling £1.25bn of nine-year bonds, which mature in 2034 – but at a higher cost, and with fewer bids than two months ago.
The 2034 gilts have been sold at a bid-to-cover ratio of 2.90 and an average yield of 4.584%. July’s £1.5bn sale of this bond was more popular – with a cover ratio of 3.32 – and an average yield of 4.553%. That means today’s auction was less over subscribed, which meant…