Treasury 4.625% Green Gilt 2037 auction - Closing 10 March 2026

poseidon1

This will only be of interest to direct investors in gilts, and therefore they are likely already aware of this forthcoming issue. If not, here's a heads up.

Will be interesting how the 'big hitters' in the auction price this issue given current market volatility, oil price rises affect on inflation and how this feeds into coming B of E rate setting decisions

https://www.hl.co.uk/shares/ipos-and-new-issues/treasury-green-gilt-2037

Have applied for an allocation in my Sipp.

InvesterJones

What a time to be selling gilts! 😣

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81915605#Comment_81915605

Indeed, but given these suboptimal circumstances for the government, I am hoping the institutional bidders will drive the price down below par, thereby producing a useful discounted acquisition price for tiny participants like myself.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81915615#Comment_81915615

Yes, quite significantly below I expect - TG37 is yielding 4.91% at time of writing so it'll discount to about a 0.3% annuallised equivalent.

DRS1

Looks like there wasn't quite the discount hoped for. But maybe all you have to do is call something Green and it is automatically more expensive.

wmb194

"The United Kingdom Debt Management Office (DMO) announces that the syndicated launch

of £6.25 billion (nominal) of 4⅝% Green Gilt 2037 has been priced at £99.221 per £100

nominal, equating to a gross redemption yield of 4.7167%. The transaction will settle, and

the initial tranche of the gilt will be issued, on 11 March 2026."

https://www.dmo.gov.uk/media/4hvmv2w1/pr100326a.pdf

intalex

Yesterday I reinvested some (TE28) coupons into TR38 units priced around 98.10… probably just timed the market there (unintentionally), but better deal than this one…

poseidon1

A disappointing outcome from my point of view, since the price is virtually par to all intents and purposes.

SnowMan

Not sure I'm understanding the logic in this thread.

The supply of gilts (amount and type i.e conventional vs nominal and short vs long etc) will affect the prices and yields of those gilts. This supply will include issuance of gilts by the DMO as well as quantitative tightening sales. When this supply of gilts to the market will affect the price will presumably depend on when that change in supply is expected by the market. At the very latest it will happen when the DMO announces the gilt auction calendar but more likely that will have already have been at least to some extent anticipated by the market through for example spending/financing plans announced in the budget etc.

By the time of the actual auction it's all long since priced in and so the auction price really just reflects market movements up to the date of the auction.

The advantage of buying through a gilt auction is then purely a cost one in that you are avoiding charges and buying at a price that doesn't have a bid/offer spread. Is that the motivation of posters here buying through auctions?

Clearly many supply and demand issues affect yields and prices so that might affect which type of gilts and which term and which coupon (high or low) are most attractive to retail investors at any point in time. For example the announcement that the government would be issuing less long term gilts has affected the yield curve (pushed long yields down a bit). The demand from defined benefit pension schemes for longer term index linked gilts for example also has majorly affected the yield curve for some time.

simonpies234

https://forums.moneysavingexpert.com/discussion/comment/81918092#Comment_81918092

And that's why DB pensions can not be cashed in.

I read a post on here once. Someone had a 1 million cash in value, was of ill health, in pain and wanted to cash it in and live of the money. A IFA told him to get part time job and refused to green light it….

That's right work until you drop and in pain. The government debt beast must be fed.