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#1: GBP3.75bln of the 0.125%...>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: #1: GBP3.75bln of the 0.125% Jan-23 gilt will be sold on
Wednesday.
- This gilt was launched four weeks ago and was the first sub-5 year gilt to be
sold by the DMO in almost three years. The auction saw an average yield of
0.204%, a healthy bid-to-cover of 3.05x and a tail of 0.6bp with the full PAOF
proceeds taken up. We would expect to see a tighter tail than at the launch
auction. We note that this gilt is note eligible for the BoE's APF programme as
it is under three years to maturity. The gilts scheduled to be sold at a further
three auctions by mid-July.
RESULTS: Auction results will be released shortly after the auction closes at
10:00BST with a further GBP937.5mln available through the PAOF to successful
bidders.

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