United Kingdom GBP

United Kingdom 16-Year Index-Linked Treasury Gilt Auction

Impact:
Low

Latest Release:

Date:
Actual:
1.265%
Forecast:
Previous/Revision:
0.986%
Period:
What Does It Measure?
The United Kingdom 16-Year Index-Linked Treasury Gilt Auction measures the government's issuance of inflation-protected bonds, which are designed to provide investors with returns that keep pace with inflation. This auction primarily assesses the demand for these securities, reflecting investor confidence in the UK economy and their expectations for future inflation.
Frequency
This auction occurs on a regular basis, typically every few months, with specific dates announced in advance by the UK Debt Management Office.
Why Do Traders Care?
Traders monitor the results of the auction closely as it can influence the broader fixed income market, impacting bond yields and pricing. A strong demand in the auction may suggest healthy investor sentiment and inflation expectations, leading to potential bullish trends in the currency and equity markets.
What Is It Derived From?
The auction results are derived from bids submitted by institutional and retail investors seeking to purchase the index-linked gilts, with the final allocation determined by the bids received. This process adheres to established bidding protocols intended to ensure transparency and fairness, and it reflects the overall market appetite for inflation-protected debt.
Description
The 16-Year Index-Linked Treasury Gilt Auction provides insights into investor expectations regarding inflation within the UK economy. The data typically includes the total amount of bids received versus the amount awarded, which indicates the level of interest or confidence from participants regarding future monetary conditions.
Additional Notes
This auction serves as a leading economic indicator, reflecting not only investor perceptions of inflation risks but also broader economic sentiment. Its performance is often compared to other bond auctions and can provide context for understanding movements in related markets, such as equities or other fixed-income securities.
Bullish or Bearish for Currency and Stocks
Higher than expected demand in the auction: Bullish for GBP, Bullish for Stocks. Lower than expected demand in the auction: Bearish for GBP, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Oct 10, 2023
1.265%
0.986%
Aug 08, 2023
0.986%
0.334%
Apr 12, 2023
0.334%
0.07%