LONDON, Jan 29 (Reuters) - Britain’s 2044 gilt has attracted more than 6 billion pounds ($9.4 billion) of orders in a syndication that started at 0900 GMT on Tuesday, and books on the transaction will close “at short notice”, one of the bookrunners said.
Price guidance for the gilt was unchanged at a level to give a yield 9.25-9.75 basis points above that of the 2042 gilt .
Strategists expect the UK Debt Management Office to sell 3.5-4.0 billion pounds of the 3.25 percent 2044 gilt, which is likely to become Britain’s next 30-year benchmark.
The syndication is the last one scheduled for a conventional gilt in the 2012/13 financial year, with a further sale of an index-linked gilt planned for the second half of February.
So far the DMO has raised 24.9 billion pounds of its 32.25 billion pound full-year syndication target.
J.P. Morgan, HSBC, Morgan Stanley and Royal Bank of Canada are joint bookrunners for Tuesday’s transaction, with all other gilt-edged market makers (GEMMs) acting as co-lead managers.
While Britain issues most of its debt through auctions, the DMO favours syndications as a way to achieve a better price for less liquid bonds, which are typically new or recently issued long-dated conventional or index-linked gilts.