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1.00% Jan-32

GILT AUCTION PREVIEW
  • The DMO will return to the market this morning with GBP3.0bln of the 10-year 1.00% Jan-32 gilt on offer.
  • While the Bank of England provides a backstop to the long-end of the curve, the 10-year auction will be seen as a litmus test for the appetite for 10-year gilts.
  • There will be particular focus on today's auction given yesterday's 40-year gilt auction saw a tail of 4.0bp - the widest at a gilt auction since November 2018.
  • The 1.00% Jan-32 gilt will be on offer again on 19 October, 15 November and 13 December with the DMO looking to issue a new Jan-33 gilt in the new year.
  • 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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