#1: Issuance will kick off.....>

GILT AUCTION PREVIEW: #1: Issuance will kick off for the week on Wednesday with

GBP3.75bln of the 0.125% Jan-23 gilt on offer.

- This will be the third auction of the gilt (the second reopening after its

launch in April). Last week saw the slightly longer maturity 0.75% Jun-23 gilt

sold with a negative yield - the first ever time a gilt has been sold at a

negative yield on the primary market - and we would expect Wednesday's 0.125%

Jan-23 gilt to also be sold at a negative yield. Demand at both the two previous

auctions of this issue and also for the 0.75% Jun-23 gilt have been decent, all

with bid-to-cover ratios of over 2x. We note that the 0.125% Jan-23 gilt is

ineligible for the BoE's APF programme as it is under three years to maturity.

The gilt is scheduled to be sold at further auctions in June and July.

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

10:00BST with a further GBP937.5mln nominal available through the PAOF to

successful bidders.