August 09, 2022 07:41 GMT
GILT AUCTION PREVIEW
- The DMO is due to come to the market this morning with GBP1.75bln of the 30-year 1.25% Jul-51 gilt on offer.
- This will be the eighth auction of the gilt since its syndicated launch in April 2021.
- The auction size of GBP1.75bln is a little smaller than the GBP2.00bln seen at last month’s auction, but in line with the May auction. The other only other auction of the gilt this calendar year saw GBP1.50bln on offer in March.
- This year’s auctions have seen bid-to-covers of 2.24-2.91x and fairly tight tails ranging from 0.2-0.4bp.
- This followed a couple of weaker auctions in September and December last year with still-decent bid-to-covers of 2.05-2.42x but wider tails of 1.1bp and 1.0bp respectively.
- Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP437.5mln available to successful bidders through the PAOF.