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#1: Launch of 0.25% Jul-31

GILT AUCTION PREVIEW
  • The new 10-year gilt will be launched tomorrow – the 0.25% Jul-31.
  • The launch comes exactly six months after the record syndication of the 0.375% Oct-30 gilt.
  • GBP3.00bln will be available via tomorrow's auction.
  • Demand around the 10-year area has been very strong with every auction of the 0.375% Oct-30 gilt seeing a bid of at least GBP6.6bln with tails ranging from 0.1-0.3bp.
  • We expect a very strong launch auction with a bid-to-cover of at least GBP2.5x.
  • RESULTS: Results will be available shortly after the auction closes at 10:00GMT with a further GBP625mln nominal available to successful bidders through the PAOF.

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