FED'S BARKIN: LOOKING FOR MORE EVIDENCE OF INFLATION'S DECLINE

BARKIN: FED SHOULD ACT DELIBERATELY, KEEP CLOSE EYE ON ECONOMY

MNI BRIEF: China Equip't Renewal Policy Includes Foreign Firms

MNI China Daily Summary: Wednesday, July 17

MNI China Press Digest July 17:  Investment, LPR, H2 Priority

MNI: PBOC Net Injects CNY268 Bln Via OMO Wed; Rates Unchanged

US Treasury Auction Calendar

Broad-based Softening In June Underlying Inflation Metrics

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

4.125% Jul-29 gilt

GILT AUCTION PREVIEW
Homepagemarkets-real-timeBulletMarketsFixed Income Bullets
  • The DMO will come to the market on Tuesday to launch the new 5-year 4.125% Jul-29 gilt via auction for GBP4.0bln.
  • This will replace the 4.50% Jun-28 gilt as the on-the-run gilt in the 5-year area. With the exception of the March auction (which was smaller so that the DMO did not overshoot its FY23/24 funding target too much) auctions for the 4.50% Jun-28 gilt were for between GBP3.75-4.00bln with bid-to-covers ranging from 2.19-3.34x and tails from 0.4-2.1bp. The March auction had a smaller size of GBP3.00bln with a higher bid-to-cover of 3.48x and a tighter tail of 0.3bp.
  • Tuesday’s auction may see a wider tail than that auction, particularly as the auction window closes at the same time Eurozone and Italian HICP are released which may increase some cross-market volatility around the end of the auction window.
  • Note that the 4.125% Jul-29 gilt will be reopened twice more in the quarter with auctions on 22 May and 18 June.
  • Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP1.0bln available to successful bidders through the PAOF.
179 words

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.
  • The DMO will come to the market on Tuesday to launch the new 5-year 4.125% Jul-29 gilt via auction for GBP4.0bln.
  • This will replace the 4.50% Jun-28 gilt as the on-the-run gilt in the 5-year area. With the exception of the March auction (which was smaller so that the DMO did not overshoot its FY23/24 funding target too much) auctions for the 4.50% Jun-28 gilt were for between GBP3.75-4.00bln with bid-to-covers ranging from 2.19-3.34x and tails from 0.4-2.1bp. The March auction had a smaller size of GBP3.00bln with a higher bid-to-cover of 3.48x and a tighter tail of 0.3bp.
  • Tuesday’s auction may see a wider tail than that auction, particularly as the auction window closes at the same time Eurozone and Italian HICP are released which may increase some cross-market volatility around the end of the auction window.
  • Note that the 4.125% Jul-29 gilt will be reopened twice more in the quarter with auctions on 22 May and 18 June.
  • Timing: Results will be available shortly after the auction closes at 10:00BST with a further GBP1.0bln available to successful bidders through the PAOF.