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New 0.125% Aug-31 linker

GILT AUCTION PREVIEW
  • This morning will see the first new index-linked gilt issue since 2018 with GBP1.00bln nominal of the 0.125% Aug-31 linker on offer.
  • We expect to see strong demand, with uncertainties removed from the market following the outcome of the RPI consultation.
  • As a reference, the 0.125% Aug-28 linker auction held in December saw a bid-to-cover of 2.57x.
  • With this being a new issue, we expect demand may be even higher.
  • The 0.125% Aug-31 linker is due to be sold via auction again on 10 March.
  • Timing: Results will be published shortly after the auction closes at 10:00GMT. A further GBP250mln nominal will be available to successful bidders via the PAOF.

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