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#2: 0.50% Oct-61

GILT AUCTION PREVIEW
  • This morning will also see the 40-year 0.50% Oct-61 gilt on offer for GBP1.5bln, a larger auction than the GBP1.25bln auction held in March.
  • March saw the only auction of the gilt so far and saw a bid-to-cover of 2.63x and a tight tail of 0.2bps.
  • The other two offerings of the gilt had been via syndication for GBP7.0bln and GBP6.5bln respectively.
  • Given the relatively wide tail of 0.9bps on the 0.875% Jan-46 gilt auction held last Wednesday, the auction will be closely watched.
  • Timing: Results will be available shortly after the auction closes at 11:30BST with a further GBP375mln available to successful bidders through the PAOF.

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