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#2: The 0.375% Oct-30 gilt.....>

GILT AUCTION PREVIEW: #2: The 0.375% Oct-30 gilt will also be on offer tomorrow.
- This will be the first time the gilt has been sold via auction, following up
its record breaking syndicated launch on 12 May where GBP12.00bln was issued
with order books of GBP53.1bln. A further GBP3.00bln will be on offer in
Tuesday's auction. Despite the gilt having only been launched last month, more
of this issue is held by the market than the 4.75% Dec-30 gilt when holdings of
the Bank of England and government are excluded. Like the 0.125% Jan-26 gilt,
the 0.375% Oct-30 gilt will again be on offer on 23 June and 14 July, and is
therefore quickly on its way to establishing itself as the 10-year benchmark.
The last auction of the previous 10-year benchmark, the 0.875% Oct-29 gilt, saw
a healthy bid-to-cover ratio of 3.19x with a very tight tail of 0.1bp.
RESULTS: Auction results will be released shortly after the auction closes at
11:30BST with a further GBP750mln nominal available through the PAOF to
successful bidders.

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