Azernews.Az

By Bloomberg

U.K. 30-year borrowing costs fell to a record in the penultimate gilt sale before the nation’s general election next month.

The Debt Management Office sold 1.75 billion pounds ($2.6 billion) of bonds due in January 2045 to yield 2.343 percent, below the previous record-low of 2.358 percent in February. Demand at the auction slid, with investors bidding for 1.43 times the securities on offer, compared with 1.58 times in February and an all-time low of 1.32 in September 2007. In the secondary market, 30-year bonds declined.

The rate added two basis points, or 0.02 percentage point, to 2.35 percent as of 10:47 a.m. London time. The 3.5 percent gilt due in January 2045 fell 0.515, or 5.15 pounds per 1,000- pound face amount, to 124.53. The yield on U.K. 10-year bonds rose one basis point to 1.58 percent.

U.K. securities due in 15 years or more have returned 4 percent this year, according to Bank of America Merrill Lynch indexes. Gilts due between one and 10 years have gained 0.9 percent, the indexes show.

The pound fell 0.2 percent to $1.4880, and climbed 0.3 percent to 71.81 pence per euro.