The United Kingdom Debt Management Office (DMO) has confirmed the forthcoming auction of a substantial tranche of government securities, specifically the 4% Treasury Gilt 2063, scheduled for Tuesday 3rd June 2025 with settlement occurring the following business day on Wednesday 4th June 2025. This issuance forms part of the UK government’s ongoing debt management strategy to fund public expenditure requirements during the 2025-26 financial year.
Bidding will be conducted through the DMO’s established auction platform, with the bidding window open from 0900 to 1000 London time on the auction date. The DMO will additionally operate a Post-Auction Option facility between 1230 and 1300 on the same day, permitting successful bidders to acquire supplementary stock up to 25% of the principal amount allocated during the primary auction. Market participants should note that applications from members of the Approved Group of investors will not be accepted for this particular issuance.
The gilt being offered carries a nominal value of £1,250 million, which will elevate the total outstanding nominal amount to £18,369.2 million post-auction. This long-dated instrument matures on 22nd October 2063, with semi-annual coupon payments scheduled for 22nd April and 22nd October each year. The next interest payment is due on 22nd October 2025. Accrued interest payable with bids has been calculated at £0.469945355191 per £100 nominal, with the security identified by ISIN GB00BMF9LF76 and SEDOL BMF9LF7. The DMO has confirmed these gilts will maintain their conventional, non-strippable status under current market conventions.
This auction represents a continuation of the UK government’s debt issuance programme, with updated sales figures published on the DMO website following each operation. The 4% 2063 gilt forms part of the UK’s strategic approach to national debt management, particularly targeting the refinancing of maturing obligations and funding new fiscal requirements. The DMO emphasised its commitment to executing this mandate through cost-effective and efficient market operations.
Prospective bidders are directed to consult the Information Memorandum and Prospectus available through the DMO’s official channels for comprehensive details regarding auction mechanics and participation requirements. The DMO clarified that this issuance aligns with its statutory objective of securing stable funding for HM Treasury while maintaining orderly market conditions in the gilt market. Market analysts observe that this ultra-long dated gilt may attract particular interest from pension funds and insurance companies seeking to match long-term liabilities, despite the current elevated yield environment for UK government debt.
