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Free Access#1: The 1.00% Apr-24 gilt......>
GILT AUCTION PREVIEW: #1: The 1.00% Apr-24 gilt will be on offer for GBP3.25bln
this morning.
- The gilt was last sold on 22 April achieving a bid-to-cover of 2.55x, yield of
0.123% and a tail of 0.2bp. Prior to that the 1.00% Apr-24 gilt had last been
sold via auction in June 2019 (a time it was the five year benchmark gilt). All
short-dated auctions through May and June have seen bid-to-cover ratios ranging
from 2.15x to 2.88x and tails of 0.2bp to 0.4bp. The 1.00% Apr-24 gilt had been
trading at a negative yield yesterday and gilts are set to open at lower yields
than yesterday following the risk off tone following the FOMC and increase in
Covid-19 cases in the US. This increases the chances that today's auction is the
third ever gilt auction to price at a negative yield.
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.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.