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#2: 1.75% Sep-37

GILT AUCTION PREVIEW
  • Also on this morning will be the 1.75% Sep-37 gilt for GBP1.75bln.
  • To date, this has been the only gilt sold over the past 3-years with a maturity of 15-20 years (although the DMO has been building up the 1.25% Oct-41 gilt as a new 20-year benchmark). Indeed, even the new 0.625% Jul-35 gilt that launched last week has a maturity of just under 15 years.
  • This will only be the second auction of the gilt this fiscal year with the previous auction back in April a larger GBP2.00bln auction but seeing a strong bid-to-cover of 2.97x and a tight tail of 0.3bp.
  • There is no further issuance planned in the 15-20-year sector before the end of November.
  • RESULTS: Results will be announced shortly after the auction closes at 11:30BST with a further GBP437.5mln available to successful bidders via the PAOF.

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