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4.125% Jan-27 gilt

GILT AUCTION PREVIEW
  • The DMO will come to the market on Tuesday to reopen its 4-year 4.125% Jan-27 gilt for GBP3.5bln.
  • This will be the fifth auction of the gilt that was originally launched in October as a short 5-year issue and has been reopened monthly since.
  • Bid-to-covers have ranged from 2.08x-2.30x with tails ranging from 0.4-0.8bp (note that both the smallest bid-to-cover and widest tail were at the launch auction).
  • Today’s auction is expected to go smoothly, and see similar results.
  • Note that the 4.125% Jan-27 gilt will be reopened again on 22 March.
  • Timing: Results will be available shortly after the auction closes at 10:00GMT with a further GBP875mln available to successful bidders through the PAOF.

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