Issue of Debt

    


UK Debt Management Office


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                                        PRESS NOTICE
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    RESULT OF THE SALE BY AUCTION OF £675 MILLION OF 2% INDEX-LINKED TREASURY STOCK 2035

The United Kingdom Debt Management Office ("DMO") announces that the auction of £675 million
 of 2% Index-linked Treasury Stock 2035 has been allocated as follows:
(Note: all prices in this notice are quoted in pounds and pence)
1. All bids which have been accepted at the striking price have been allotted approximately
    23.5% of the amount bid for.

   Competitive bids made at prices above the striking price have been allotted in full.
    Competitive bids made at prices below the striking price have been rejected.
                                                                     Price       Real Yield*
                                                              ------------------------------
2. Striking Price                                                  £142.31              .95%

3. The total amounts allotted and bids received were as follows:
   Amount allotted to competitive bids                                      £608.930 million
   Amount allotted to non-competitive bids
                                               Gilt-edged Market Makers      £65.800 million
                                                                 Others       £0.270 million
                                                                            £675.000 million
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   Total bids received                                                    £1,592.859 million
                                                                       ---------------------
   Times covered                                                                 2.36 times
4. Cheques may be presented for payment. Refund cheques, where appropriate, will be sent as
    soon as possible by post. Stock allotted to members of CREST will be credited to their
    accounts by member-to-member deliveries on the relevant settlement date if they so
    requested.
                                                                       *Assumed Inflation 3%
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