Free Trial

3.50% Oct-25 Gilt

GILT AUCTION PREVIEW
  • The DMO will return to the market this morning with GBP4.25bln of the 3.50% Oct-25 gilt on offer.
  • This will be the first time the DMO has reopened a gilt with a residual maturity of less than 2-years and is likely to be the last auction of the gilt ahead of the launch of a new 3-year gilt in the new year.
  • Of the auction held in H2-23 all have seen bid-to-covers of at least 2.6x but tails have ranged from 0.3-1.1bp (with the 1.1bp at the last auction in October).
  • Note that there will probably be a bit more attention paid to today's auction given the weak 30-year 3.75% Oct-53 auction held yesterday. However, there are quite different demand profiles for the short-end of the gilt curve versus the long-end, so we wouldn't necessarily expect a weaker auction today because of yesterday's weak auction, particularly given that demand at the short-dated APF operation was in line with the previous.
  • Timing: Results will be available shortly after the auction closes at 10:00GMT with a further GBP1,062.5mln available to successful bidders through the PAOF.

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.