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Decent to relatively strong auction

GILT AUCTION RESULTS
  • We had noted in our preview that we looked for a relatively wide tail and the 0.9bp that we have seen meets that criteria (but is smaller than than the mean of 1.4bp seen on 0.25% Jan-25 gilt auctions in 2022 and the 1.8bp/1.5bp seen in Nov/Dec respectively).
  • The bid-to-cover was decent at 2.23x, particularly given that this was the largest gilt auction in nominal terms since January 2016.
  • All in all a decent to relatively strong auction.
  • Gilt futures are sitting at their lows of the day after the results were released.

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