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0.625% Oct-50

GILT AUCTION PREVIEW
  • GBP2.00bln of the 0.625% Oct-50 gilt will also be on offer this morning.
  • This will be the seventh auction of the gilt since its very successful syndicated launch back in June.
  • After a couple of weak auctions in July, auctions have been relatively successful, particularly last month's auction which saw a bid-to-cover of 2.27x and a tail of 0.1bp.
  • We caution that with Brexit headlines flying around there could be potential for a less successful auction today. Some investors could shy away from duration in a time when volatility could be exacerbated.
  • The Oct-50 gilt will be on offer twice more this fiscal year with auctions scheduled for 26 January and 23 February.
  • RESULTS: Results will be available shortly after the auction closes at 11:30GMT with a further GBP500mln available to successful bidders through the PAOF.

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