Economy July 2, 2026 05:09 AM

UK Sells £3.25 Billion of 2037 Green Gilts at Sub-100 Prices

Auction clears with mixed allocations and tight tails; non-competitive bids filled at slightly different price

By Maya Rios
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The UK completed a sale of £3.25 billion in green gilts maturing in 2037, carrying a 4.625% coupon. The auction drew £10.75 billion in bids, produced a bid-to-cover ratio of 3.31 and featured narrow price and yield tails. Competitive and non-competitive allocations were disbursed at slightly different prices and yields.

UK Sells £3.25 Billion of 2037 Green Gilts at Sub-100 Prices
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Key Points

  • The UK sold £3.25 billion of green gilts due in 2037 with a 4.625% coupon.
  • Total bids reached £10.75 billion, yielding a bid-to-cover ratio of 3.31; competitive allotments amounted to £2.76 billion and non-competitive allotments to £487.502 million combined.
  • Auction dispersion was narrow: a yield tail of 0.2 basis points and a price tail of 1.3 ticks; non-competitive bids were filled at 97.455 with a yield of 4.934%.

Britain sold £3.25 billion of green gilts on Thursday, issuing bonds that pay a 4.625% coupon and come due in 2037.

The auction's lowest accepted price was 97.442, which equates to a yield of 4.935%. At the top end of accepted competitive bids, the highest price was 97.525, corresponding to a yield of 4.925%. Non-competitive bidders were allocated at a price of 97.455 with a yield of 4.934%.

Total bids submitted to the sale amounted to £10.75 billion, producing a bid-to-cover ratio of 3.31. The auction recorded a yield tail of 0.2 basis points and a price tail of 1.3 ticks, indicating the spread between the highest and lowest accepted competitive offers.

Allocation details show competitive bids received £2.76 billion of the issue. Non-competitive bids accounted for £487.5 million from gilt-edged market makers and £0.002 million from other participants. At the lowest accepted price, the percentage allotted was 19.5297%.


Auction mechanics and allocation

The sale split the £3.25 billion nominal amount between competitive and non-competitive participants. Competitive bidders had their offers accepted across a range of prices, with the highest and lowest accepted competitive prices recorded as 97.525 and 97.442 respectively. Non-competitive bids were filled at the single price of 97.455 and matched to a yield of 4.934%.

Demand indicators

With total bids of £10.75 billion against the £3.25 billion on offer, the auction produced a bid-to-cover ratio of 3.31. The reported yield tail of 0.2 basis points and a price tail of 1.3 ticks quantify the dispersion among accepted competitive bids. The percentage allotted at the lowest accepted price was 19.5297%, reflecting the share of demand satisfied at that price point.


This report presents the auction results and allocation figures as released. It does not include commentary beyond the figures and breakdowns provided.

Risks

  • Partial allotments at the lowest accepted price - only 19.5297% was allotted at that price - may leave some bidders only partially filled, affecting primary market participants in the gilt market.
  • Small but measurable dispersion between highest and lowest accepted competitive prices (97.525 versus 97.442) and the yield tail of 0.2 basis points indicate slight variation in investor pricing that could affect fixed-income traders and portfolio managers.
  • Non-competitive bids from other participants were minimal (£0.002 million), which points to limited participation from that category of bidders and introduces uncertainty about demand composition in the non-competitive segment.

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