Gilt Auction Treasury 4.375% 2028 - closes 12 November with HL

wmb194

intalex said:

wmb194 said:

Oof, 4.5% seems bad but I guess the market moved in the past day:

I thought 4.499% is decent?

Markets appeared to move favourably in the past day to deliver the tiny discount, else this could have landed on or slightly above par?

Or am I missing something?

Decent for the buyers, bad for the Treasury. US Treasuries jumped yesterday and that seems to have fed into gilts this morning.

poseidon1

intalex said:

Results out, landed with a tiny discount at 99.629 and yield of 4.499% which is not bad for a ~3.5 year term...

Had hoped for a small discount, given the less than favourable market response to the recent budget projections to deliver the economy growth  and  tax revenues, touted for the next few years. Will be interesting to see if this discount results in sub par prices when trading opens.

intalex

wmb194 said:

Decent for the buyers, bad for the Treasury. US Treasuries jumped yesterday and that seems to have fed into gilts this morning.

Phew, good job MSE only has buyers, no treasury peeps :-))

intalex

Been given the nickname TE28

poseidon1

intalex said:

Been given the nickname TE28

Seems to be indicative bid/ offer of £99.58/99.78 ( give or take), on off book trades for those interested in buying in due course - see LSE link below 

https://www.londonstockexchange.com/stock/TE28/united-kingdom/company-page

gravel_2

With Ulster dropping to 4.5% a low coupon gilt is looking more and more attractive.

Is there any ready made calc/Excel to calculate income taking into account accrued income?

Also, presumably if only receiving a small annual coupon can the income simply be reported through PAYE HMRC portal or does any amount of gilt income require registration for self assessment?

poseidon1

gravel_2 said:

With Ulster dropping to 4.5% a low coupon gilt is looking more and more attractive.

Is there any ready made calc/Excel to calculate income taking into account accrued income?

Also, presumably if only receiving a small annual coupon can the income simply be reported through PAYE HMRC portal or does any amount of gilt income require registration for self assessment?

Interest received half yearly ordinarily, but there will be a short payment on 7 March 2025 and then 6 monthly thereafter.

I self assessed on all my income, so not sure of any options to report direct via HMRC portal.  

Sorry can't help with an accrued income calculator, I tend to time bond purchases (gilts and corporates) just after an interest payout or brand new issues, to avoid a 'dirty price'.

poseidon1

TE28 now trading marginally above par, at a running yield of around 4.364% currently. Seems to be a steady stream of retail buyers driving the price.

intalex

Anyone know of a broker who offers automatic reinvestment of the coupon into the GILT?

InvesterJones

intalex said:

Anyone know of a broker who offers automatic reinvestment of the coupon into the GILT?

HL, iWeb.. probably most others too.