UK Linker-Bond Sale Receives Record Orders Above £55 Billion.

Investor demand for UK debt remains strong despite the government's plans for a large borrowing spree. The UK Debt Management Office received over £55 billion in orders for a 30-year inflation-linked debt offering, a record high for this type of security. This follows an oversubscribed sale of 10-year notes the previous day. Despite the large supply of gilts, investors are eager to secure high yields before the Bank of England lowers interest rates, with the first reduction expected in August. The yield on UK 30-year inflation-linked bonds is currently at 1.2%, slightly above the average rate of the past year. [Extracted from the article]