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4.125% Jan-27

GILT AUCTION PREVIEW
  • Just a reminder that the new 5-year gilt (the 4.125% Jan-27) is currently being auctioned for the first time for GBP3.5bln.
  • There will be focus on the level of demand and also the size of the tail.
  • The current benchmark 5-year gilt, the 1.25% Jul-27 gilt has seen yields trade between 4.542%-4.665% today (so a 12.3bp range). It is trading roughly in the middle of this range at 4.609% at writing, 5.0bp above yesterday's close.
  • Results will be available shortly after 10:00BST with a further GBP875mln available to successful bidders through the PAOF.

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