#2: Tomorrow will also see.....>

GILT AUCTION PREVIEW: #2: Tomorrow will also see the first auction of the 0.625%

Oct-50 gilt after its syndicated launch on 9 June. GBP2.25bln will be on offer.

- The syndicated launch was very successful with GBP9.0bln raised with a book

size of GBP72.8bln nominal. The indicative price guidance for the gilt was

originally the 1.75% Jan-49 gilt plus a spread of 0.5 to 1.0bp with the final

spread set to the tight end of the range at 0.5bp with GBP9.0bln sold. Since the

launch, the spread has tightened further and at writing stood at 0.1bp. The DMO

noted at launch that 91% of the allocated had been taken up by the UK domestic

market rather than overseas investors. The Bank of England has purchased

GBP856mln nominal of the gilt through its APF purchase programme. The DMO is due

to sell the 0.625% Oct-50 gilt again via auction on 21 July.

RESULTS: Results will be posted shortly after the auction closes at 11:30BST. A

further GBP562.5mln will be available to successful bidders through the PAOF.