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#2: 1.25% Oct-41

GILT AUCTION PREVIEW
  • Also on offer this morning will be the 1.25% Oct-41 gilt.
  • This will keep up the pattern of one auction per month of the gilt since the beginning of the fiscal year.
  • GBP2.25bln will be on offer, a larger auction than the GBP2.00bln seen on offer in the last three auctions.
  • Excluding the first gilt auction of the fiscal year, bid-to-covers have ranged from 1.95-2.42x, with the last auction seeing the strongest bid-to-cover in that range. Tails have ranged from 0.1-0.7bp, but again the last auction was the strongest in the range with a tail of 0.1bp.
  • RESULTS: Results will be available shortly after the auction closes at 11:30GMT with an additional GBP562.5mln available to successful bidders via the PAOF.

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