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GILTS: Short 20-Year Supply Expected to Go Smoothly

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

The result of the DMO’s first auction of the new fiscal quarter is due shortly, with GBP2.25bln nominal of the short 20-year 4.75% Oct-43 gilt on offer

  • No real signs of intraday pre-auction concession for 20s on the 10-/20-/30-Year gilt fly, although last week saw 20s hit the cheapest closing level since February on that structure.
  • Elsewhere, Gilts hit fresh cycle closing cheaps vs. swaps on Monday.
  • In terms of the auction history, the gilt was launched via syndication in November 2023 and has been reopened twice per quarter via auction since which auction sizes ranging from GBP2.00-2.25bln.
  • Every auction has seen strong demand with bid-to-covers ranging from 3.29-3.67x and tails ranging from 0.1-0.4bp.
  • We expect another strong auction this time out.
  • The line will be auctioned again on on 12 November.
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The result of the DMO’s first auction of the new fiscal quarter is due shortly, with GBP2.25bln nominal of the short 20-year 4.75% Oct-43 gilt on offer

  • No real signs of intraday pre-auction concession for 20s on the 10-/20-/30-Year gilt fly, although last week saw 20s hit the cheapest closing level since February on that structure.
  • Elsewhere, Gilts hit fresh cycle closing cheaps vs. swaps on Monday.
  • In terms of the auction history, the gilt was launched via syndication in November 2023 and has been reopened twice per quarter via auction since which auction sizes ranging from GBP2.00-2.25bln.
  • Every auction has seen strong demand with bid-to-covers ranging from 3.29-3.67x and tails ranging from 0.1-0.4bp.
  • We expect another strong auction this time out.
  • The line will be auctioned again on on 12 November.