#1: The 0.125% Jan-26 gilt.....>

GILT AUCTION PREVIEW: #1: The 0.125% Jan-26 gilt will kick off issuance for the

week.

- The gilt will eventually become the 5-year benchmark. GBP3.25bln will be on

offer. Note that for a gilt to be eligible for the BoE's APF purchase programme,

at least GBP4.00bln must have been issued, so in order for this gilt to be

immediately eligible the majority of the PAOF will need to be taken up (note

that gilts also cannot be purchased under APF rules a week before or after an

auction). The current five-year benchmark (the 0.625% Jun-25 gilt) was last

issued just under three weeks ago and saw a decent bid-to-cover ratio of 2.55x

and a tail of 0.4bp. The 0.125% Jan-26 gilt will be on offer again on 23 June as

well as 14 July.

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

10:00BST with a further GBP812.5mln nominal available through the PAOF to

successful bidders.