A few more thoughts on yesterday's............>

GILTS: A few more thoughts on yesterday's consultation agenda for Sep-Nov.

- As we mentioned in our preview, the only area of the curve that does not have

a current benchmark is the 15-year area and we suspected that if there were any

new gilts issued 15-year was the most likely candidate (see Gilt Week Ahead).

The DMO is seeking views on launching a new 15-year gilt via syndication in

early September (we suspect 8 September).

- The DMO have asked for candidates for long-dated gilt syndications and we

still think that the 0.50% Oct-61 gilt that was launched in May is the most

likely long-dated gilt to be issued. The DMO noted this syndication would be

late Sep or Oct/Nov (we pencil in 22 Sep).

- It is no surprise that the DMO is focusing on building benchmarks. The other

new gilts the DMO is looking at potentially launching this quarter include a new

Jan-24 gilt (which would be eligible for the BOE's APF purchases as its maturity

would be over the 3-year cut-off). And a new 10-year - although we think that

the launch of the new 10-year could be pushed back to January potentially.

- The DMO notes that it does not rule out a linker syndication in the period.