#1: GBP3.50bln of the 0.625%...>

GILT AUCTION PREVIEW: #1: GBP3.50bln of the 0.625% Jun-25 gilt will be on offer

tomorrow.

- This is a slightly larger auction than the previous for this gilt - on 13 May

GBP3.25bln was on offer. The gilt is still considered the five-year benchmark

despite the June launch of the 0.125% Jan-26 gilt. Auctions of these two gilts

so far this fiscal year have seen bid-to-covers ranging from 2.28-2.83x and

tails ranging from 0.2-0.4bp. The 0.75% Jul-23 and 1.50% Jul-26 gilts, along

with the 0.625% Jun-25 gilt have taken up more than half of the BOE's

short-dated APF purchases since the new QE programme was announced on 20 March,

with the BOE having purchased around GBP11bln of each of the gilts in this

period.

- The auction will be closely watched after two relatively weak auctions today.

RESULTS: Results will be announced shortly after the auction closes at 10:00BST

with a further GBP875mln available to successful bidders via the PAOF.