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

GILT AUCTION PREVIEW: #2: Issuance for the week will conclude with GBP2.00bln of

the 4.25% Jun-32 gilt on offer.

- This is the first sale of the gilt since December 2015. The gilt is ineligible

for the BoE's APF programme as the 70% free float limit has been exceeded and

this auction will not bring the gilt back under that threshold so it will remain

ineligible for the programme. This could have opposing impacts as the gilt is

relatively scarce, driving up demand, but there is no buyer of last resort in

the market, reducing demand. The last high coupon gilt to be sold of a similar

maturity was the 4.75% Dec-30 gilt last month which saw a healthy bid-to-cover

of 3.85x and a tail of just 0.2bp.

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

11:30BST with a further GBP500mln available through the PAOF to successful

bidders.