#2: Issuance for the week......>

GILT AUCTION PREVIEW: #2: Issuance for the week will conclude today with

GBP2.25bln of the 1.25% Oct-41 gilt on offer.

- This will be the second auction this fiscal year of the gilt with further

auctions scheduled for June and July as the DMO builds the gilt into the 20-year

benchmark. Ahead of today's auction there is a nominal GBP4.9bln outstanding of

the issue, of which GBP1.6bln is held by the BOE. Other gilts with similar

maturities are sized closer to GBP25bln with a little under GBP15bln held by the

market (ex BOE and govt). The previous two auctions have seen tails of 0.2bp and

0.3bp with bid-to-cover ratios of 2.18x and 2.58x respectively.

RESULTS: Auction results will be released shortly after the auction closes at

11:30BST with a further GBP562.5mln available through the PAOF to successful

bidders.