Free Trial

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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: #2: The 0.375% Oct-30 gilt will also be on offer this
morning.
- 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 today'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.

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.