Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

GILTS: Linkers (3 auctions): All GEMMs favoured at least one re-opening of the
0.125% Aug-28 linker. There was also significant GEMM support for the 0.125%
Aug-48 linker and the 0.125% Nov-36 linkers. Also mentioned were a new 15y
linker, the 0.125% Aug-41 linker and the 0.125% Nov-56 linker although there was
a consensus that demand is moving towards a shorter duration. Investors favoured
a variety of maturities with the 0.125% Aug-28, 0.125% Nov-36 linker and the
0.125% Aug-48 linker most mentioned.
- Syndication: November was seen as the most appropriate month with both GEMMs
and investors favouring leaving the decision or linker or conventional until
closer to the time.
- Tender: GEMMs and investors supported a conventional in the 20-30y area of the
curve (The DMO has since announced it will hold a Stg500mln tender of the 4.25%
Dec-2046 gilt on Thurs August 22) (2/2)