United Kingdom GBP

United Kingdom 30-Year Treasury Gilt Auction

Impact:
Low

Latest Release:

Date:
Actual:
5.357%
Forecast:
Previous/Revision:
5.104%
Period:
What Does It Measure?
The United Kingdom 30-Year Treasury Gilt Auction measures the government's borrowing costs and market demand for long-term debt securities, specifically 30-year gilts. It assesses investor interest, yield levels, and the overall fiscal health of the UK, focusing on rates, bid-to-cover ratios, and implied inflation expectations.
Frequency
This auction occurs regularly, typically once a month, with the results published soon after the auction concludes, reflecting preliminary figures that may later undergo revision.
Why Do Traders Care?
Traders pay close attention to gilt auction results as they have direct implications for interest rates and overall market sentiment regarding UK fiscal policy. Successful auctions often lead to bullish behavior in the currency and bond markets, while weaker demand can signal bearish trends, influencing portfolios and investment strategies accordingly.
What Is It Derived From?
The yield and demand metrics from the auction are derived from bids submitted by a range of institutional and individual investors. The final yield is determined through the auction process, which uses a competitive bidding system to allocate securities based on price and quantity.
Description
The 30-Year Treasury Gilt Auction provides insights into long-term financing costs for the UK government, reflecting investor confidence and economic expectations. A high bid-to-cover ratio indicates strong demand, while a low ratio may suggest reluctance among investors, impacting subsequent interest rates and fiscal strategies.
Additional Notes
This auction serves as a coincident economic measure, providing real-time insights into government borrowing conditions and fiscal health. It is closely linked to broader trends in debt securities around the globe, affecting perceptions of risk and investment in similar long-term instruments issued by other governments.
Bullish or Bearish for Currency and Stocks
Higher than expected demand: Bullish for GBP, Bullish for Stocks. Lower than expected demand: 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
5.357%
5.104%
5.104%
5.198%
5.198%
4.747%
4.747%
4.735%
4.735%
4.329%
4.329%
4.636%
4.636%
4.43%
4.43%
4.664%
4.664%
4.926%
4.926%
4.704%
4.704%
4.484%
4.484%
4.478%
4.478%
4.083%
4.083%
3.864%
3.411%
4.409%
4.409%
2.36%
2.36%
2.531%
2.531%
2.04%
2.04%
1.58%
1.58%
0.871%
0.871%
1.332%
1.332%
0.972%
0.972%
1.274%
1.274%
1.295%
1.295%
1.302%
1.302%
0.837%
0.837%
0.842%
0.784%
0.683%
0.683%
0.668%
0.668%
0.025%
0.025%
0.612%
0.612%
0.68%
0.68%
1.029%
1.029%
1.289%
1.289%
1.254%
1.148%
1.421%
1.421%
1.739%
1.739%
1.909%
1.909%
1.826%
1.937%
1.806%
1.806%
1.871%
1.871%
1.827%
1.827%
1.671%
1.671%
1.787%
1.787%
1.863%
1.863%
1.956%
1.956%
1.488%
1.488%
1.529%
2.095%
2.345%
2.345%
2.21%
2.208%
2.49%
2.49%
2.45%
2.45%
2.73%