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0.875% Jul-33 green gilt

GILT AUCTION PREVIEW
  • The bidding period is already open for the DMO's GBP3.0bln auction of the 10-year 0.875% Jul-33 green gilt.
  • There will be increased focus on today's auction after yesterday's very weak linker auction that moved gilt futures around 20 ticks - a rare occurrence for a linker auction to have that much of a broad market impact.
  • This will be the third auction of this green gilt this fiscal year and (6th overall plus the initial syndication). Bid-to-covers have remained strong across all issues (ranging from 2.22x-3.02x) but tails have been a bit more variable (1.3bp in the September 2023 auction but just 0.2bp in May 2023).
  • The DMO has announced no plans to reopen this gilt again before the end of the fiscal year.
  • Timing: Results will be available shortly after the auction closes at 10:00GMT. Note that there is no PAOF for Green Gilt auctions.

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