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Gilt sale will target pension funds with highest yield in 15 years

Alice Gledhill, James Hirai and Naomi Tajitsu

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London | The United Kingdom’s sale of ultra-long gilts this week will offer the highest coupon in almost 15 years, a sign of the elevated funding costs that governments must now bear.

The 40-year conventional bond will pay 4 per cent, reflecting the jump in yields after more than a year of interest rate hikes. But it may have to offer an additional concession to lure a key part of the buyer base.

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    Original URL: https://www.afr.com/world/europe/gilt-sale-will-target-pension-funds-with-highest-yield-in-15-years-20230514-p5d8ba