Orders for the new 2029 index-linked gilt that Britain is launching via syndicate exceed 8 billion pounds, a source familiar with the transaction said on Tuesday, adding that books for the deal were closing at 0945 GMT.

The new gilt, which has a 0.125 percent coupon, will be priced versus the 2027 index-linked gilt, and price guidance is for it to offer a yield 8.5 basis points above that of the 2027 linker, at the tighter end of the initial 8.5-10.5 basis point range, the source said.

The Debt Management Office had said that the linker launch was due this week, and strategists expect it to have a volume of around 3-4 billion pounds.

(Reporting by David Milliken; editing by Patrick Graham)