Free Trial

1.625% Oct-71

  • Tomorrow the DMO will hold the only auction of a conventional gilt this week with the 50-year 1.625% Oct-71 gilt on offer for GBP1bln.
  • This gilt was launched via two syndications in 2018 before being reopened in 2020 via another syndication and then its first auction.
  • The second and most recent auction of the gilt was on 2 February when a bid-to-cover of 2.32x was achieved with a tail of 0.2bp.
  • The price of 137.295 achieved at the auction has fallen substantially in line with the sell-off in long-dated bonds globally.
  • A low of 111.291 was seen on 25 February. Since early March the gilt has traded in a 112.912-123.605 range with the prevailing price at 119.1.
  • After two long-dated auctions in the second half of March which saw tails of over 1bp, last week's 0.875% Jan-46 gilt saw a much tighter tail of 0.3bp.
  • Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP250mln

To read the full story



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.