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0.375% Oct-26

GILT AUCTION PREVIEW
  • Gilt issuance will kick off this morning with GBP3.0bln of the 5-year benchmark 0.375% Oct-26 gilt on offer.
  • This will be the third auction of the gilt, with all auctions so far having been for GBP3.0bln with bid-to-covers of 2.53x and 2.56x respectively and tails of 0.3bps.
  • We would expect to see a similar result at this week's auction.
  • The gilt is due to be sold again on 8 June and the agenda for the consultation meeting to discuss issuance in the July-Sep period looks for it to be reopened at least twice during the period.
  • Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP750mln available to successful bidders through the PAOF.

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