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1.125% Oct-73 gilt tender

GILT AUCTION PREVIEW
  • The DMO will return to the market this morning to hold its first tender operation since August 2022 with GBP750mln nominal of the 50-year 1.125% Oct-73 gilt on offer.
  • The gilt was launched via syndication in February 2022 for GBP4.25bln nominal and then reopened again via syndication on 21 June 2022 for GBP5.5bln nominal.
  • There have been no auctions or tenders of the 50-year gilt since its launch.
  • Indeed, there has only been one auction of any conventional gilt with a longer than 30-year maturity since the LDI issues in the gilt market (and also since the BOE’s APF sales programme started).
  • That auction saw GBP2.0bln nominal of the 0.50% Oct-61 gilt sold at auction on 8 March (with a full PAOF takeup).
  • Note that recent long-dated BOE APF sales operations have been on the weak side.
  • Timing: Results will be available shortly after the operation closes at 10:00BST.

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