The floating-rate deal was only the third time since 1992 Britain has borrowed money other than in sterling or European currency units (Ecu). Britain normally issues fixed-rate government bonds for its financing needs in sterling and Ecu.
"As far as the market is concerned, this is a surprise. That's the way the Bank (of England) prefers to do it," said one trader at a British bank involved in the deal.
There has been talk recently that Britain was lining up another large bond but the rumours were vague. Britain launched a $2 billion bond on July 15 to refinance part of a $4 billion loan taken out 10 years ago.
That deal sparked speculation Britain would increasingly use international rather than domestic debt markets for funding.
