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3.75% Mar-27 gilt

GILT AUCTION PREVIEW
  • The DMO will return to the market this morning with GBP4.0bln of the short 3-year 3.75% Mar-27 gilt on offer.
  • This will be the fifth auction of the gilt with auction sizes to date have ranged from GBP3.75-4.00bln, bid-to-covers having all be in excess of 3.00x and tails ranging from 0.2-0.5bp.
  • We expect another strong auction today, despite yesterday's soft 40-year auction.
  • We note that the 3.75% Mar-27 gilt will be reopened again on 2 July and 21 August.
  • Timing: Results will be available shortly after the auction closes at 10:00GMT with an additional GBP1.0bln available to successful bidders through the PAOF.

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