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0.125% Aug-31 linker

GILT AUCTION PREVIEW
  • The DMO will hold its first linker auction of 2023 this morning with GBP1.1bln nominal of the 0.125% Aug-31 linker on offer.
  • This index-linked gilt was also the last sold with a much smaller size of GBP700mln nominal on 7 December 2022 seeing strong demand with a bid-to-cover of 3.24x.
  • The other 2022 auctions were more consistent with the amount on offer this week as they ranged from GBP1.0-1.2bln nominal.
  • For those three auctions bids were very similar volumes, ranging from GBP2.756-2.765bln.
  • If a similar volume of bids was seen this week, it would result in a bid-to-cover around 2.5x.
  • Timing: Results will be available shortly after the auction closes at 11:30GMT with a further GBP275mln available to successful bidders through the PAOF.

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