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Decent 5-year auction

GILT AUCTION RESULTS
  • That was a decent 5-year gilt auction for the 4.50% Jun-28 Gilt with the bid-to-cover of 2.47x higher than the July auction where we saw 2.19x, but even more importantly was the tighter tail: 0.6bp at today's auction versus 2.1bp previously.
  • This tighter tail saw the LAP marginally above the pre-auction mid-price (whereas in July it was notably below).
  • There was a cheapening going into the auction cut-off time of 10:00BST but overall this was still a decent auction.

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