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#1: 1.25% Jul-27

GILT AUCTION PREVIEW
  • The 1.25% Jul-27 auction will kick issuance off for the week this morning with GBP2.75bln on offer.
  • This will be the fourth auction of the gilt so far this fiscal year with each auction having seen healthy demand with bid-to-cover ratios in excess of 2x. The last auction at the end of July saw a wider tail, however, of 0.7bp compared to the 0.3bp tails on the first two auctions of the fiscal year.
  • The 1.25% Jul-27 gilt trades at a premium of around 8.2bp to the on-the-run 0.125% Jan-28 gilt and has traded in am 8-9bp range in September.
  • The 1.25% Jul-27 gilt will be on offer again on 24 November.
  • RESULTS: Results will be announced shortly after the auction closes at 10:00BST with a further GBP687.5mln available to successful bidders via the PAOF.

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