Free Trial

#2: 1.625% Oct-54 gilt

GILT AUCTION PREVIEW

The 1.625% Oct-54 gilt will also be on offer tomorrow with GBP1.5bln due
to be sold.

  • This will be the fifth auction of the gilt so far this fiscal year (it is also
    due to be auctioned on 25 August). However, it is unclear whether the DMO
    will continue to issue the gilt at the same pace in the September to November
    period as only the 1.25% Oct-41 and 0.625% Oct-50 gilts are named as gilts that
    the DMO "expects to continue to build up…to benchmark size".
  • The last auction of the gilt about a month ago saw a tail of 0.4bp and
    bid-to-cover of 2.30x. The tail was double the 0.2bp seen in the first three
    auctions of the fiscal year but the bid-to-cover was not substantially
    different. We note that the last three auctions in a similar part of the curve
    have seen tails of at least 1.0bp (two auctions of the 0.625% Oct-50 and an
    auction of the 1.75% Jul-57).

RESULTS: *Results will be announced shortly after the auction closes at
11:30BST with a further GBP375mln available to successful bidders via the PAOF.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.