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(Bloomberg) -- The UK received record orders for its first syndicated bond sale since borrowing costs spiked earlier this month, offering some respite to Chancellor of the Exchequer Rachel Reeves.

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The £8.5 billion ($10.4 billion) offering of debt due in 2040 drew excess of £119 billion of demand on Tuesday, beating the previous record for the securities originally sold in September.

Since then, UK bond yields surged as the government revealed plans to borrow near-record amounts in the current fiscal year. That, coupled with concerns about inflationary pressures and slow growth, pushed the rate on 15-year gilts to an 18-year high of more than 5.2% earlier this month.

The rout called into question the government’s ability to keep its deficit in check and created a headache for the Chancellor who has reaffirmed her promise to stick to rigid fiscal rules. Yields have since retreated to around 5%.

The pricing on the sale was tightened to four basis points over comparable bonds, according to people familiar with the matter who asked not to be identified.

Such debt syndications are typically more expensive than auctions, but they allow governments to raise large sums quickly while diversifying their investor base.

Bookrunners on the deal are Deutsche Bank AG, JPMorgan Chase & Co, Morgan Stanley, Nomura Holdings Inc and Royal Bank of Canada.

The minutes of a meeting between the DMO, bond dealers and investors this week revealed a preference for short-dated debt as well as strong support for a reduction in longer maturities.

France is also selling debt of a similar tenor on Tuesday, with banks building an order book for a bond maturing in 2042.

--With assistance from Greg Ritchie.

(Adds amount sold in second paragarph.)

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