LONDON- Britain attracted the strongest investor demand in nearly three years as it kicked off a record period of debt issuance to fund higher coronavirus-related public spending on Tuesday with the launch of a new government bond maturing in January 2023.
Investors bid for 3.05 times the 3.25 billion pounds ($4.00 billion) available of the 0.125% January 2023 gilt, which sold at an average yield of 0.204% in the auction, the United Kingdom Debt Management Office said.
The last time a gilt auction attracted higher demand was in July 2017.
The auction was the first of two due on Tuesday, followed by two more on Wednesday -- the highest number of gilt auctions Britain has held in a week, as part of its efforts to sell a record 45 billion pounds of government bonds this month.
Gilt prices rose slightly after the auction.
Demand for gilts is supported by the Bank of England's plans to buy a further 200 billion pounds of assets - mostly British government bonds - including 13.5 billion pounds of gilts via reverse auctions scheduled for this week. ($1 = 0.8130 pounds)
(Reporting by David Milliken, editing by William Schomberg) ((david.milliken@reuters.com; +44 20 7542 5109; Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))
