MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

1.25% Jul-51

GILT AUCTION PREVIEW
  • The DMO will come to the market this morning for the final gilt auction of 2021 with GBP1.5bln of the 30-year 1.25% Jul-51 gilt on offer.
  • This will be a notably smaller auction than the GBP2.0bln that have been seen at every auction since the gilt was launched in April via syndication (for GBP6bln).
  • After having seen tails of 0.2bp and 0.5bp in June and August, the last auction on 28 September saw a tail of 1.1bp.
  • The tail will be closely watched after the last long-dated gilt auction on 16 November saw a tail of 1.0bp (the 0.875% Jan-46 gilt) and last week’s launch of a new 10-year gilt (the 1.00% Jan-32) saw a tail of 1.9bp which saw the gilt futures contract fall.
  • There has been a notable widening of tails at gilt auctions since the day preceding the Autumn Budget – tails have been 1.0bp in the six auctions since, compared to 0.4bp in the six auctions prior to that (and 0.4bp for the fiscal YTD average too).
  • This is probably largely due to a lack of liquidity in the market given the continued BOE purchases under its APF programme at the time of a sharp slowdown in issuance from the DMO.
  • With auction sizes having fallen, however, there has not really been a notable corresponding fall in bid-to-cover ratios to match the wider tails.
  • Timing: Results will be available shortly after the auction closes at 10:00GMT.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.