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Decent to relatively strong auction

GILT AUCTION RESULTS
  • That was a decent to relatively strong auction of the 0.50% Oct-61 gilt with an acceptable tail (in line with other long-dated gilt auctions in 2023) with the LAP above the pre-auction mid-price.
  • Indeed, the LAP of 33.172 had not been seen in the secondary market since prior to the auction window for the gilt opening.
  • In the aftermath of the auction we have seen the price of the 0.50% Oct-61 gilt move higher and it is now trading around the mid-price achieved at auction.
  • Gilt futures have also moved a few ticks higher and are now back trading where they were pre-auction, around 22 ticks lower on the day at 99.86.

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