UK Sovereign

France and the UK, downgraded by Fitch earlier this year, will probably have to wait until at least 2021 to regain their top ratings, according to a report from the rating agency released this week.

A big new UK government-guaranteed bond issuer is likely to appear in the next few years: the special purpose vehicle that will build a new nuclear power station at Hinkley Point in Somerset.

The UK Debt Management Office printed a larger than planned tap of a 3.5% July 2068 conventional Gilt on Tuesday — leaving it with one inflation linked reopening to complete its syndicated work for the financial year. The sovereign got the deal away ahead of the delayed release of US nonfarm payroll data scheduled for later in the day.

Austria, Belgium, Finland and the UK were among the European sovereigns to add to their funding totals with benchmark deals this month.

The UK took home £1bn more than planned and inverted the far end of its inflation linked yield curve with its longest dated index linker ever on Tuesday.

As European sovereigns gear up for a busy period of auctions in late August and September, here are the latest funding figures for selected issuers.

The UK’s Debt Management Office (DMO) priced on Tuesday a £4bn increase of its 0.125% March 2044 inflation-linked Gilt. It was the first time that the DMO has syndicated a slug of inflation-linked debt since November 2012 when it tapped the same issue.

France, Germany and Spain held well received auctions of medium to long term debt this week. Here is a round-up of key European sovereigns' funding figures.

The UK’s Debt Management Office (DMO) announced the mandate for a syndicated tap of 31 year inflation linked bonds on Friday, with the deal expected for the week beginning July 22. The DMO is expected to follow up with a new ultra-long inflation linked Gilt in the third quarter.

A growing bid among Asian institutional investors for UK sovereign debt is adding much needed liquidity to the market, according to the UK Debt Management Office.

The UK’s syndication of a 55 year Gilt on Tuesday exceeded expectations — attracting the third largest book ever on a UK syndication in the joint second fastest book build. The Dutch State Treasury Agency also enjoyed strong demand in an auction of five year bonds.

SSA bankers predicted that the week’s new issue supply could be confined to sovereign borrowers, as the volatility which engulfed markets late last week shows little sign of abating.