The United Kingdom Debt Management Office (DMO) will reopen the 1⅞% index-linked Treasury gilt 2049 through a syndicated sale in the week commencing 23 November 2026, it has announced. The deal will be the fifth transaction of the DMO's 2026-27 syndication programme.

The DMO said the re-opening of the inflation-linked gilt is planned for that week, subject to demand and market conditions. Further details, including the appointment of the syndicate of banks that will manage the sale, will be announced in due course.

What the DMO announced

The gilt in question is the 1⅞% Index-linked Treasury Gilt 2049, which is repayable on 22 September 2049 and pays interest half-yearly on 22 March and 22 September. Its ISIN is GB00BT7J0134. The bond was first issued on 12 March 2025, and the DMO sold £900 million of it at auction on 3 September 2026. The total amount outstanding stands at £6,400 million in nominal terms.

Index-linked gilts differ from conventional gilts because their payments rise in line with inflation, which makes them attractive to pension funds and other long-term investors looking to protect the real value of their income. A syndicated re-opening, rather than an auction, allows the DMO to sell a larger amount in a single transaction with the help of a group of banks.

The syndication programme so far

Syndicated gilt sales of £54.1 billion are planned under the DMO's 2026-27 financing remit. That total is made up of £33.8 billion of medium conventional gilt sales across three transactions, £12.5 billion of long conventional gilt sales across two transactions, and £7.8 billion of index-linked gilt sales across two transactions.

The DMO's current planning assumption is that it will hold seven syndicated offerings in 2026-27, five in conventional gilts and two in index-linked gilts, although the planned numbers may vary depending on demand and market conditions.

Four syndications have already taken place this financial year. The DMO raised cash proceeds of £14,930 million from the 4⅞% Treasury Gilt 2036 on 14 April 2026, £8,899 million from the 5¼% Treasury Gilt 2041 on 9 June 2026, £4,774 million from the 1¾% Index-linked Treasury Gilt 2038 on 14 July 2026, and £3,979 million from the 5⅜% Treasury Gilt 2056 on 8 September 2026, a total of £32,582 million.

What happens next

FTSE Russell confirmed on 9 November that, following the DMO's announcement, the 1⅞% Index-linked Treasury Gilt 2049 will remain in its FTSE Actuaries UK index-linked gilt indices, including the All Stocks, over 5 Years, over 15 Years, 15 to 25 Years, 5 to 25 Years and over 10 Years indices, with effect from the start of trading in the week commencing 23 November 2026.

Investors will now watch for the DMO's announcement of the syndicate banks and the size of the transaction, which will show how strong demand is for long-dated inflation protection at a time when UK borrowing costs remain high by recent standards.