Keep calm and borrow on: UK unshaken by volatility
Syndicating a reopening of a 55 year bond in a month where sterling was shaken by volatility could have been tough for the UK Debt Management Office this week. But it passed the test with flying colours, attracting its largest book ever on an ultra-long syndication and breaking the 3% yield bogey for the first time.
“Gilts experienced considerable volatility in October but notwithstanding that, this was a remarkably smooth offering,” said Robert Stheeman, chief executive of the UK DMO in London. “This deal is a real vote of confidence in the Gilt market and we find the result very reassuring.”