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APF SALES: Weak bid-to-cover and focus in 30-40 year area

BOE
  • The vast majority of the gilts sold at the APF are between 30-40 years to maturity, with over 80% of the sales in cash proceed terms of the 0.50% Oct-61 gilt.
  • The 1.60x bid-to-cover is the lowest seen since 9 October 2023.
  • Hard to really isolate any impact of this operation in gilt futures given the general downward move in govvies.

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