UK's DMO says 2058 linker syndication drew record demand

LONDON (Reuters) - The launch of a new ultra-long index-linked gilt drew record demand from an overwhelmingly domestic investor base, Britain's Debt Management Office said on Tuesday.

The DMO also said it would increase the amount of money it seeks to raise via syndications for linkers this financial year by 500 million pounds to 9.0 billion pounds, following strong demand for the new 2058 index-linked gilt.

Investors - 96 percent of whom were British - placed orders totalling more than 14 billion pounds, the highest amount for an index-linked gilt syndication on record.

The DMO said proceeds from sale were expected to be around 5.4 billion pounds, compared with its original planning assumption of 4-4.5 billion pounds.

(Reporting by Andy Bruce; editing by William Schomberg)