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#1: The 2.75% Sep-24 gilt......>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: #1: The 2.75% Sep-24 gilt will be on offer for GBP3.25bln
this morning.
- This is a slightly larger auction than its offering in April of GBP3.00bln
which saw a tail of 0.3bp, yield of 0.103% and bid-to-cover of 2.79x. The
majority of the PAOF was also taken up. The gilt is currently ineligible for the
Bank of England's PAOF facility as it has exceeded the free float limits but
will be eligible once again after this auction. We note that despite most
short-dated gilt auctions having been very successful recently, the gilt closest
in maturity to the 2.75% Sep-24 (i.e. the 1.00% Apr-24) saw a relatively wide
tail of 0.6bp at its auction two weeks prior to this.
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.

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