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#2: The 1.25% Oct-54 gilt......>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: #2: The 1.25% Oct-54 gilt will be auctioned for the fourth
time this fiscal year today with GBP1.50bln on offer.
- The other auctions since April have seen decent demand with tails of 0.2bp and
bid-to-covers of 2.34x-2.60x. We expect a similarly strong auction this week.
Although there are no plans for the 1.625% Oct-54 gilt to be reopened again
before mid-July, we think there is a good chance that the gilt is reopened at
least twice more between mid-July and the end of September.
RESULTS: Auction results will be released shortly after the auction closes at
11:30BST with a further GBP375mln nominal available through the PAOF to
successful bidders.

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