Keep calm and carry on: DMO sails through syndication despite downgrade

The UK Debt Management Office reopened its 0.25% 2052 index linked Gilts to the tune of £3.75bn on Tuesday. Despite Moody’s downgrading the UK late last week and Europe’s debt markets being engulfed in volatility on Tuesday following the disappointing results to Italy’s government elections (see separate story), the DMO book build was a bun fight and the tap was priced flat to secondaries