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#2: 1.25% Oct-41

GILT AUCTION PREVIEW
  • This morning will also see GBP2.0bln of the 1.25% Oct-41 gilt on offer.
  • This will keep up the DMO's pattern of re-opening the 1.25% Oct-41 gilt once per month since the beginning of the fiscal year as the DMO builds up the gilt as the 20-year benchmark (with its launch auction in January the only operation in a previous fiscal year).
  • With the exception of one weak auction in August, the bid-to-cover has always been in excess of 2x (and August was only just below at 1.95x) and the tail has been in a range of 0.2-0.4bp (August was 0.7bp).
  • Results: Results will be available shortly after the auction closes at 11:30GMT with a further GBP500mln available to successful bidders through the PAOF.

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