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#2: 1.25% Oct-41 auction

GILT AUCTION PREVIEW
  • This morning will also see GBP2.25bln of the 20-year 1.25% Oct-41 gilt on offer.
  • This is the only scheduled auction of the gilt in this quarter with the DMO instead preferring to concentrate on building up newer gilts to benchmark size.
  • The last four auctions have seen very tight tails of 0.1bp with bid-to-covers ranging from 2.22-2.52x.
  • Yields on the 1.25% Oct-41 gilt have risen around 15bp since the last auction on 9 March which saw the highest yield of any auction of the issue of 1.223%.
  • Timing: Results will be available shortly after the auction closes at 11:30BST with a further GBP562.5mln available to successful bidders through the PAOF.

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