November 10, 2022 07:54 GMT
4.125% Jan-27
GILT AUCTION PREVIEW
- The DMO will conclude a busy week of issuance this morning with GBP3.5bln nominal of the 4.125% Jan-27 gilt on offer.
- This will be the first reopening of the gilt after it was launched at auction on 12 October in an identically-sized auction which saw a bid-to-cover of 2.08x and tail of 0.8bp.
- Given the strong demand for short-dated gilts and the collateral shortage in the UK at present, we expect a strong auction this week, with a tighter tail.
- Timing: Results will be available shortly after the auction closes at 10:00GMT with a further GBP875mln available to successful bidders through the PAOF.
100 words