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

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.