#2: The 4.50% Sep-34 gilt......>

GILT AUCTION PREVIEW: #2: The 4.50% Sep-34 gilt will be on offer for GBP2.00bln

tomorrow, concluding issuance for the week.

- The gilt was first launched via syndication in the depths of the global

financial crisis in June 2009 with a syndicated size of GBP7.0bln. This remains

the fourth largest ever syndicated gilt sale. However, this week will be the

first time that the gilt has been sold by the DMO since October 2015. Other

similar maturity high coupon gilts issued this fiscal year have been the 4.75%

Dec-30 gilt (auctioned twice) and the 4.25% Jun-32 gilt (auctioned once). These

three actions have seen strong demand with bid-to-covers ranging from 2.99-3.85x

and all have had tails of 0.2bp. Again, after today's weak auctions this auction

will be closely watched.

RESULTS: Results will be announced shortly after the auction closes at 11:30BST

with a further GBP500mln available to successful bidders via the PAOF.