United Kingdom GBP

United Kingdom 30-Year Green Gilt Auction

Impact:
Low

Latest Release:

Date:
Actual:
4.976%
Forecast:
Previous/Revision:
4.831%
Period:
What Does It Measure?
The United Kingdom 30-Year Green Gilt Auction measures the government's ability to raise long-term financing for environmentally sustainable projects through the issuance of green bonds, specifically targeting investors focused on socially responsible investment. It primarily assesses demand for these securities and the cost of borrowing over a long duration, influencing investment sentiment and fiscal policy.
Frequency
The 30-Year Green Gilt Auction occurs as needed, typically on a scheduled basis, with dates announced in advance by the UK Debt Management Office, and results are released soon after the auction takes place.
Why Do Traders Care?
Traders monitor the results of this auction closely as it provides insights into investor confidence and demand for government debt, impacting interest rates and the broader bond market. Strong demand for these green gilts can drive prices up and yields down, influencing currency valuations and stock prices, especially in environmentally-conscious sectors.
What Is It Derived From?
The auction results are derived from competitive bids submitted by institutional and retail investors, reflecting their willingness to purchase bonds at set yields. The final interest rates and the total amount raised are closely watched, as they indicate market sentiment toward governmental fiscal policy and long-term sustainability initiatives.
Description
The 30-Year Green Gilt Auction is a financing mechanism wherein the UK government issues bonds specifically earmarked for funding projects with positive environmental impacts. The results highlight the amount of capital raised and the interest rates paid, providing a snapshot of market conditions and an indicator of long-term investment strategies focused on green initiatives.
Additional Notes
The results from the auction are often compared to regular gilt auctions to determine the relative attractiveness of green bonds. Green gilt auctions serve as a leading economic indicator for measuring environmental investment trends in the UK and can influence global perceptions of sustainable finance.
Bullish or Bearish for Currency and Stocks
If the auction results are higher than expected: Bullish for GBP, Bullish for Stocks. If the auction results are lower than expected: Bearish for GBP, Bearish for Stocks. A dovish tone: Signaling lower borrowing costs or increased support for green investments, is usually good for the GBP but bad for Stocks due to potential reduced immediate returns.

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
Feb 05, 2025
4.976%
4.831%
Oct 31, 2024
4.831%
4.545%
May 08, 2024
4.545%
4.565%
Jul 04, 2023
4.387%
4.018%