Gilt auction oversubscribed despite election uncertainty

A Government auction of £2.25bn of gilts was two-and-a-half times oversubscribed despite uncertainty over the result of the election.

The Debt Management Office announced it had sold £2.25bn of 2027 treasury gilts in an auction that was 2.47 times covered. It says the highest accepted bid was £97.45, a yield of 4.461%. The lowest accepted bid was £97.25 and the rounded average accepted price was £97.31. Insight fund manager David Hooker explains: "At the end of the day, the gilt market has sold off on the political worries and yields have risen. Obviously there are people who think the level of yields now compensates them for the various risks they see in terms of the political situation. "It has to be remembered...