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0.625% Jul-35

GILT AUCTION PREVIEW
  • This morning, the DMO will return to the market to sell GBP2.50bln of the 0.625% Jul-35 gilt.
  • This will be the sixth auction of the gilt after its syndicated launch in September.
  • We note that February's auction of the gilt saw the widest tail to date of 0.5bp (although the bid-to-cover remained at a healthy 2.55x). Previous tails have ranged from 0.0-0.2bp and bid-to-covers from 2.41x-2.95x.
  • After the wide 1.1bp tail on the 1.625% Oct-54 auction yesterday, the tail in today's auction will be closely watched.
  • The DMO will continue to build up this 15-year benchmark with monthly auctions scheduled until at least the end of June.
  • Results: Results will be available shortly after the auction closes at 10:00GMT.

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