UK gilt futures extend losses after low demand at auction

08 Sep, 2015

LONDON: British government bond prices fell on Tuesday after an auction of 30-year bonds attracted weak demand and underperformed German debt.

At 0950 GMT gilt futures were trading 25 ticks below their level before the auction, which attracted offers equivalent to 1.39 times the amount of debt on sale, well below the average level of demand that British gilt auctions typically attract.

The spread on yields between 10-year gilts and German Bunds widened by two basis points to more than 116 bps.

Copyright Reuters, 2015

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