#1: GBP3.25bln of the 2.25%....>

GILT AUCTION PREVIEW: #1: GBP3.25bln of the 2.25% Sep-23 gilt will be on offer

this morning.

- This will be the first issuance of the 2.25% Sep-23 gilt since February 2014,

the last auction of building the gilt up to be the 10-year benchmark at the

time. The closest comparable gilt is the off-the-run 0.75% Jul-23 gilt which was

last auctioned two weeks ago. The auction was the only auction in the history of

the gilt market to see an average yield in negative territory. There was a

bid-to-cover ratio of 2.15x with a tail of 0.4bp. As of Tuesday's close, the

2.25% Sep-23 gilt was trading at a yield of -0.025% so there is a good chance

that this could be the second gilt auction in history to achieve a negative

yield. The issue is not scheduled to be re-opened again at present.

RESULTS: Auction results will be released shortly after the auction closes at

10:00BST with a further GBP812.5mln nominal available through the PAOF to

successful bidders.