Investors rushed to buy UK government bonds on Tuesday by placing a record order of more than £100 billion at a gilt auction, defying Labour’s warnings about the parlous state of the public finances and a possible “run on the pound”.
Bond investors placed orders totalling £110 billion during the auction for an £8 billion bond maturing in January 2040, the highest recorded demand for an issuance of that size according to data from Bloomberg. The coupon was set at 4.375 per cent, the Debt Management Office said.
Investors are snapping up UK government debt after gilts have rallied this summer on the back of an interest rate cut from the Bank of England and expectations of more easing to come before the end of