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Decent 40-year auction

GILT AUCTION RESULTS
  • That was a decent 40-year gilt auction with a tail of 0.6bp (the 4.00% Oct-63 gilt represented the first time since March last year that the DMO had sold a longer-than-30 year gilt via a conventional auction.
  • The price climed just ahead of the closing time, and the LAP of 90.369 was close to the highs seen over the auction window (apart from the last minute or so).
  • No real impact of the auction on gilt futures.

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