Strong demand for British bond

The sale of one of Britain’s longest dated inflation-linked government bonds yesterday drew strong demand — producing the lowest negative real yield on record for a syndicated offering of gilt linkers.

The Debt Management Office also said it would increase the amount of money it seeks to raise via syndications for linkers this financial year by £1bn to £10bn (€13.3bn), following strong demand for the 2058 index-linked gilt.

Investors — 86% of whom were British-based — placed orders totalling £10.9bn, enough to push the yield in real terms below zero to a record low -0.8955%.