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1.00% Jan-32

GILT AUCTION PREVIEW
  • The DMO is due to come to the market this morning to offer GBP2.75bln of the 10-year 1.00% Jan-32 gilt via auction.
  • This will be the fifth auction of the gilt, and the largest nominal auction size yet after auctions of GBP2.25bln were held in December and February and GBP2.5bln auctions were held in April and June (although note that for the latter two auctions, the full PAOF proceeds were taken up).
  • Outside of the launch, auctions have been smooth with bid-to-cover ratios healthy and growing, ranging 2.51x-.2.85x and tails of 0.2bp seen at the last two auctions.
  • Of course, much of this will depend on market conditions on the day, which have been a little unpredictable lately.
  • Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP687.5mln available to successful bidders via the PAOF.

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