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Syndication pulls long-dated yields to cycle highs

GILTS

Long-dated gilts have been under pressure today as the DMO has held a syndicated tap of the 50-year 1.125% Oct-73 gilt.

  • All gilts with a maturity matching of 20-years and higher (i.e. from the 4.50% Dec-42 gilt and longer) saw yields hit a new cycle high today shortly after the syndication was priced. (Most of the highs in yields were around 12:50BST with the syndication pricing at 12:42BST).
  • We have since come off these high yields a little, but accompanied by the long 25-year green EU bond syndication today, we have seen longer-dated yields driven higher across countries.

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