LONDON: British 10-year government bonds fell to an eight-day low on Thursday after soft demand at an auction of 3.25 billion pounds ($5.39 billion) of September 2024 gilts.
The UK Debt Management Office attracted bids worth 1.69 times the volume on offer, the lowest ratio in the five times the gilt has been auctioned since it was launched in March.
Ten-year gilt yields rose to 2.462 percent, 4 basis points up on the day. This was their highest level since Aug. 13 as the gilt underperformed other maturities, while its spread over Bund yields rose above 145 basis points, the highest since Aug. 1.
The September 2024 gilt's yield stood 4 basis points up on the day at 2.573 percent, as its price fell below the lowest accepted by the DMO at auction.
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