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UK names syndicate for sale of 50-year index-linked gilt

Fri, 15th Jul 2016 07:33

LONDON, July 15 (Reuters) - Britain's debt agency choseGoldman Sachs, HSBC, Royal Bank of Scotland and Santander on Friday as bookrunners for thesale of several billion pounds of 50-year inflation-linkedgovernment bonds later this month.

The sale of the 0.125 percent 2065 index-linked bond will be the first syndication to take place sinceBritain voted on June 23 to leave the European Union.

The UK Debt Management Office said it would take place inthe week starting July 25.

Investors have shown strong demand for British governmentdebt since the vote to leave the EU and yields have fallen torecord lows, reducing the cost of government funding.

The 2065 linker currently offers a negative real yield of-1.475 percent.

Britain sold 3.5 billion pounds ($4.67 billion) of 30-yearindex-linked bonds at a syndication on May 24 whichattracted record demand.

The DMO aims to raise a total 16.5 billion pounds viasyndications during the 12 months to the end of March 2017. ($1 = 0.7488 pounds) (Reporting by David Milliken; Editing by Tom Heneghan)

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