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4.625% Jan-34 gilt

GILT AUCTION PREVIEW
  • The DMO will return to the market this morning with GBP3.75bln of the 4.625% Jan-34 gilt on offer.
  • This will be the final auction of the on-the-run 10-year gilt with May seeing the 0.875% Jul-33 green gilt reopened via auction and June expected to see the launch of a new 10-year gilt via syndication (we pencil in the W/C 10 June.
  • The last auction of the 4.625% Jan-34 gilt saw a tail of 0.7bp (the second widest since launch) but a respectable big-to-cover of 3.33x (the second highest since launch). Every auction of the gilt has been for GBP3.75bln (with the exception of an extra auction added in December 2023 for GBP3.0bln).
  • We would expect a relatively strong auction today.
  • Timing: Results will be available shortly after the auction window closes at 10:00BST.

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