LONDON: British government bond prices jumped on Tuesday after a sale of 1.75 billion pounds ($2.71 billion) of 30-year gilts attracted the strongest demand for a conventional bond auction since October.
The UK Debt Management Office said investors bid for 1.89 times the amount of the gilt on offer, the strongest demand for any non-inflation linked British government bond since a sale of the same gilt on Oct. 7, 2014.
September gilt futures extended gains by as much as 40 ticks after the data, to peak at 116.89 at 0951 GMT, 98 ticks up on the day and erasing an earlier underperformance versus German Bund futures.
Ten-year gilt yields fell to their lowest since June 2 at 1.918 pct, 9 basis points down on the day, while 30-year yields fell to their lowest since June 15 at 2.682 percent, some 7 basis points lower.
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